Mixed global cues and US-Iran uncertainty kept Indian markets flat at the open. Nifty opened at 24,112, up 34 points. Sensex added 150 points. Bank Nifty was down 60 points.
On Wednesday, the Sensex rose 130.49 points or 0.17%, to finish at 77,185.43, while the Nifty 50 gained 26.45 points or 0.11%, to settle at 24,078.50. The rupee opened at Rs. 96.25, nearly unchanged from Wednesday's close of Rs. 96.26. DIIs bought equities worth Rs. 704.93 crore on July 15. FIIs turned net sellers, offloading Rs. 735.83 crore.
Technically, the Sensex formed a Doji candle on the daily chart, indicating indecisiveness among traders.
“On the positive side, 77,500 would act as a key resistance zone for traders, while 77,000 remains the crucial support zone for the bulls. Above 77,500, the market could move up to 77,800-78,000. On the flip side, dismissing the 77,000 level could accelerate selling pressure. Below this, the market could retest the level of around 76,300-76,000," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nifty 50 formed a long doji candle on the daily chart with shadows on both sides, reflecting intraday indecision.
“Nifty 50 is currently hovering within a narrow range of around 24,200-24,000 levels and is showing a lack of strength to sustain the highs. A decisive move beyond the range could open sharp movement on either side,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
The sideways movement is expected to continue for the next 1-2 sessions, with support at 24,000 and 23,800 below that. Traders must clear the intraday hurdle of 24,200 to stage a larger breakout toward 24,500-24,600.
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Bank Nifty has been consolidating on the daily chart over the past few sessions. The index formed a small-bodied candle with an upper wick, highlighting the index's inability to sustain at higher levels.
"Going ahead, the immediate support for Bank Nifty is placed in the 57,300-57,200 zone. Any sustainable move below this zone could result in index extending its weakness towards 56800, followed by 56,400 in the short term. On the upside, the immediate resistance is placed in the 58,200-58,300 zone," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
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