The Indian stock markets are likely to open on a positive note, tracking positive cues from global markets, amid hopes of a US-Iran peace deal. GIFT Nifty also indicates a gap-up start, trading at 23,697 with a premium of 66 points from its previous Nifty futures close.
On Thursday, the Sensex fell 135.03 points or 0.18% to close at 75,183.36, while the Nifty 50 declined 4.30 points or 0.02% to settle at 23,654.70.
The rupee recovered yesterday closing at Rs. 96.20 per dollar compared with Wednesday's record closing low of Rs. 96.82.
India VIX extended its decline for the third consecutive session, falling 3.35% to 17.82.
Technically, the Sensex failed to sustain higher levels, and continuous selling pressure was witnessed throughout the session.
The short-term texture of the market is non-directional, and range-bound activity is likely to continue in the near future. On the downside, 75,000-74,500 remain the crucial support zones, while 75,800-76,000 could act as key resistance areas for the bulls. On the positive side, a breakout above 76,000 could push the market up to 76,300-76,500, while below 74,500, it could retest the levels of 74,000-73,800," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nifty 50 continued to witness a volatile and range-bound session as the index struggled near higher levels, reflecting a cautious undertone. The index remained below the falling 20-DEMA near 23,800, indicating weak short-term momentum and continued supply pressure on recovery attempts, said Dhupesh Dhameja, Derivative Research Analyst at Samco Securities.
Technically, the 23,750-23,850 zone remains a strong resistance area, while buyers continue to defend the 23,500-23,300 support band, keeping the index trapped in a narrow consolidation range. The RSI near 45.55 reflects subdued momentum and a lack of aggressive buying participation.
Derivatives data shows heavy Call writing near 23,800-24,000 continues to cap upside momentum. As long as the index stays below resistance levels, a slightly cautious bias with a “sell on rise” strategy remains favourable.
On Thursday, Bank Nifty fell 122.80 points or 0.23% to close at 53,439.40, forming a bearish candle on the daily chart, signaling selling pressure at higher levels.
“Index is likely to consolidate in the range of 52,700-54,700. Bank Nifty holding above the key support area of 52,700-52,400 will lead to a pullback towards the recent breakdown area of 54,000 and 54,700,” said Bajaj Broking.
"The index needs to form higher high and higher low on a sustained basis in the daily chart and a move above the breakdown area of 54,400-54,700 to signal a pause in the recent downtrend. Key support is placed at 52,700-52,400 levels," the brokerage added.