Stock Market Today: Nifty 50, Sensex Likely to Open Lower Amid Weak Global Cues; Bank Nifty May Extend Gains

The Indian stock market on Friday, October 17, is predicted to start with a slight drop after Gift Nifty's early indications, which are trading around 25,613, down by 43 points from Nifty futures' last close. Investors, after two days of significant gains, are likely to take a cautious approach and observe the market ahead of key macroeconomic announcements and corporate earnings.

On Thursday, Indian benchmark indices extended their winning streak for the second session. The Sensex climbed 862.23 points (1.04%) to close at 83,467.66, while the Nifty 50 surged 261.75 points (1.03%) to end at 25,585.30, comfortably above the 25,500 mark.

Sensex Outlook

Technical indicators indicate, Sensex remains in an uptrend in the near term, with some minor profit-taking.

Support is expected around 83,200-82,900, while resistance is around 83,800-84,000. A decisive break above the 84,000 level would open the door to a retest of record highs, while a close below 82,900 would risk fresh selling pressure.

Nifty 50 Outlook

The Nifty 50 index formed a strong bullish candle on the daily chart. Analysts state that a breakout above 25,400-25,500 could shift sentiment, with the index ready to challenge 25,670.

A sustained move above 25,700 can eventually lead to 26,000 - 26,200, with support at 25,420-25,400.

The prevailing setup in the options data also indicates firm support around 25,500 and resistance near 25,700, highlighting a zone of consolidation before the next leg higher.

Bank Nifty Outlook

The Bank Nifty extended its strong momentum on Thursday, rising 622.65 points (1.10%) to close at 57,422.55 . The index is trading above all major moving averages, reflecting strong momentum. 

Analysts expect the index to test 58,000-58,500 in the near term as long as it remains above its immediate support zone of 56,900-57,000.

RSI is at 66, implying healthy momentum, and any dip toward 57,000 would be viewed as a buy-on-dips opportunity.

Sectoral Trends and Institutional Flows

The Realty, FMCG, and Auto sectors were the top-performing sectors on Thursday. The realty and FMCG sectors each rose roughly by 2% following healthy Q2 results, while auto shares gained 1.3%. 

FIIs had a minor purchase of Rs. 68.6 crore, while DIIs added Rs. 4,650 crore, showing a continued domestic confidence. Domestic factors such as lower crude prices, steady bond yields, and the expectation of a US Federal Reserve rate cut are all regarded as favorable macroeconomic conditions.

Also Read: US Stock Market Today: NASDAQ Rises 0.1% & Dow Jones Slips 0.2%, as Geopolitical Tensions Weigh on Market Gains

Outlook

Overall, the short-term trend continues to be favorable, with the Nifty support at 25,400 and resistance around 25,700. During the market consolidation period coinciding with the quarterly earnings season and global cues, traders might favor picking up accumulation on dips strategy, particularly for banking, FMCG, and auto.