The Indian stock markets are expected to open lower amid weak global sentiments, rising oil prices, and a hawkish Federal Reserve Policy. GIFT Nifty also indicates a gap-down start, trading at 24,084.5 with a discount of 171.5 points from its previous Nifty futures close.
On Wednesday, the Sensex rose 609.45 points or 0.79% to close at 77,496.36, while the Nifty 50 edged up 181.95 points or 0.76% to settle at 24,177.65.
In the broader market, the Nifty Midcap 100 index ended marginally lower, while the Nifty Smallcap 100 index gained 0.65%.
Foreign institutional investors (FIIs) sold net Rs. 2,468 crore worth of Indian equities on April 29. At the same time, domestic institutional investors (DIIs) bought net shares worth Rs. 2,262 crore, according to provisional exchange data.
Technically, the Sensex formed a green candle with a longer upper shadow on the daily chart, the index witnessed profit booking at higher levels, however, the short-term outlook remains positive.
Resistance is seen at 77,800, a break above this level would suggests a fresh uptrend toward 78,100, and if buying accelerates index could retest 78,500-78,700 zone.
On the downside, if the index declined below 77,200, sentiment could turn negative, and the index could slip to the 76,500-76,300 range.
Yesterday, Nifty 50 opened the session on a strong note and witnessed a steady uptrend, reaching an intraday high of 24,335. However, profit booking at higher levels capped the upside.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities said “On the daily chart, Nifty briefly moved above the previous three-day high of 24,206, but failed to sustain at elevated levels. The index ended the session with a small-bodied bullish candle accompanied by an upper wick, indicating selling pressure at higher levels. Going ahead, the immediate resistance for Nifty is placed in the 24,300-24,330 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24,500, followed by 24,650 in the short term. On the downside, the immediate support for Nifty is placed in the 24,000-23,970 zone, which coincides with the 20-day EMA.”
On Wednesday, Bank Nifty ended just 3.25 points or 0.01%, higher at 55,403.60, forming a small body bearish candle with a longer upper shadow and a small lower shadow, failing to hold higher levels.
Bajaj Broking said, "We expect the Bank Nifty to extend consolidation in the broad range of 54,500-57,500 amid stock-specific action as we progress through the quarterly earnings session of the banking stocks."
Within the consolidation only a move above 56,475 will open further upside towards the 57,000 and 57,500 levels in the coming sessions. From a short-term perspective, support is placed in the range of 54,500-54,000 zone, being the confluence of the recent low and 38.2% retracement of the last 3 weeks pullback, Bajaj Broking added.
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