The Indian stock market opened lower after a sharp four-session rally, with investors likely to lock in profits as the market assesses the recent rebound. Nifty 50 opened 68.6 points lower at 23,742.25 from the previous day’s close, while Bank Nifty started at 55,485.10, down 54.95 points. Sensex edged down by 64.74 points to 76,853.11.

The broader indices also ended higher but underperformed, with the Nifty midcap index rising 0.8% and the smallcap index gaining 0.3%. The Indian rupee opened 18 paise higher at Rs. 94.56 per dollar on Wednesday compared with the previous close of Rs. 94.74.

Foreign institutional investors (FIIs) continued their buying streak for the third consecutive session, purchasing equities worth Rs. 6,836 crore on November 3. Meanwhile, domestic institutional investors (DIIs) also extended their selling streak for the third straight session, offloading equities worth Rs. 3,678 crore.

Sensex Outlook

Sensex maintained positive momentum after a strong gap-up opening. It formed a bullish candle on the daily charts and maintained a higher-bottom formation on the intraday charts, supporting a further uptrend from current levels. 

“For traders 76,500 and 76,300 would now act as key support levels. As long as the market trades above these levels, bullish sentiment is likely to continue. On the upside, it could rally towards

77,500-77,800. However, below 76,300, the uptrend would become vulnerable, and traders may prefer to exit their trading long positions,” said Shrikant Chouhan, Head of Equity Research, Kotak Neo.

Nifty 50 Outlook 

Nifty 50 has extended its bullish trend for four consecutive trading sessions, forming a sequence of higher highs and higher lows. On the shorter timeframes, the RSI has entered overbought territory, suggesting that the index could be vulnerable to profit booking. Therefore, a buy-on-dips approach would be preferable. 

The index may encounter resistance in the 23,800-23,900 zone. On the downside, the 23,200-23,500 range is likely to act as immediate support in the event of a pullback. 

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Bank Nifty Outlook

Bank Nifty also staged a strong recovery from the 53,600 level and has now moved above its 20-day EMA and is now positioned just below its 50-day EMA. The index formed a double-bottom pattern around the 53,800 zone. A move above the recent high of 56,000 would confirm the pattern and could trigger a rally towards 57,000.

The RSI has crossed above its previous swing high, supporting the bullish view. Dips should be treated as buying opportunities as long as the index holds above the 53,800 zone.