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Indian equities are set for a muted opening on Friday, September 19, despite upbeat global cues, as indicated by early trends on Gift Nifty. Gift Nifty was trading near 25,469 in early trade at the time of writing, about 41 points lower than the Nifty futures’ previous close, indicating a cautious start for Indian markets.
On Thursday, both benchmark indices extended their winning streak for the third consecutive session. The Sensex gained 320 points to finish at 83,013.96, while the NSE Nifty 50 gained 93 points to end at 25,423.60.
The rally was fueled by the optimism following a 25 basis-point US Federal Reserve rate cut, the ongoing GST reforms, and developments in India-US trade talks.
The Sensex continues to maintain a short-term positive trend after opening higher on Thursday, though some profit-taking emerged at upper levels. Analysts note that immediate support is placed around 82,700.
If the index remains above this level, the bullish sentiment likely continues. On the upside, 83,300 will be the key resistance level. If the index breaks above this level, the rally could extend toward 83,500-83,600.
On the other hand, if the index slips below 82,700, it could slow the momentum and also prompt traders to begin to cut long positions.
On the daily chart, Nifty 50 formed a candle with a long lower shadow, indicating strong buying demand at support. Technical analysts point to a potential "hanging man" pattern, indicating caution higher up.
If the Nifty goes below 25,330, it would indicate weakness, while a move above 25,450 would confirm that the bearish setup is negated.
The short-term momentum remains positive, with resistance zones in the range of 25,500-25,700, and support just below 25,300. The index may test 25,650-25,750 in the near term if buyers support any dips.
On Thursday, Bank Nifty closed at 55,727, gaining 234 points. A hanging man pattern was formed, suggesting the market is indecisive.
Resistance is expected around 56,000-56,160, while immediate support is seen at 55,050, followed by 54,500.
Analysts recommend buying near support and selling near resistance in the near-term. If Bank Nifty can sustain above short- and medium-term moving averages, its bias remains positive with upside potential toward 56,150.
Adani Group shares may remain in the spotlight after the Securities and Exchange Board of India (SEBI) provided a clean chit in its final order to Gautam Adani and his brother Rajesh Adani and several Adani Group companies. This development may be a relief to investors and help boost sentiment toward the conglomerate.
Meanwhile, foreign institutional investors (FIIs) bought shares worth Rs 366 crore and domestic institutional investors (DIIs) acquired Rs 3,326 crore in equity on Thursday, reflecting a consistent inflow into Indian markets.
Despite global optimism and supportive domestic flows underpinning sentiment, traders should expect a volatile session with Nifty 50 facing resistance around 25,500-25,700 and strong support around 25,300.
