Stock Market Update: Sensex, Nifty 50 Likely to Open Lower Amid Mixed Global Cues; Bank Nifty Shows Strength

The Indian stock market is expected to open Friday’s session cautiously in line with the sentiment across global markets. Early indications from the Gift Nifty suggest a quiet opening around 25,262, 12 points lower than the previous Nifty futures close.

On Thursday, Indian stocks extended gains for the second day in a row, with Sensex gaining 398.44 points (0.49%) to finish the day at 82,172.10 and Nifty 50 going up by 135.65 points (0.54%) to end at 25,181.80. The rally was backed by excellent results in metal, pharma, and banking shares.

Sensex Outlook

Sensex has kept a bullish structure, forming a bullish candle on the daily charts, indicating an extension of the uptrend. Analysts believe the uptrend will stay only as long as the index does not fall below 81,700.

The immediate resistance zones are seen near 82,200-82,300, and a breakout above 82,300 could further extend the uptrend toward levels of 83,000-83,200. A move below 81,700 could invite some short-term weakness.

Nifty 50 Outlook

Nifty 50 has been consolidating near key resistance and is now positioned for a potential breakout. A clear move above 25,200 could lead the index toward 25,400-25,450, while immediate support is at 25,000.

According to Nagaraj Shetti of HDFC Securities, the long bullish candle on Thursday suggests that the consolidation seen earlier in the week may be coming to an end.

Nilesh Jain of Centrum Broking added that momentum indicators remain in buy mode, suggesting dips are likely to attract fresh buying.

Bank Nifty Outlook

Bank Nifty maintained its upward movement and at 56,192.05, 173.8 points above the previous day's close. The index is staying above important moving averages, keeping the bullish structure intact.

According to analysts, a move above 56,500 may trigger a rise to 57,200, while support is at 55,800-55,900.

Om Mehra of SAMCO Securities also notes that near-term moving averages remain in a bullish crossover formation, and as long as 55,800 holds, the bias stays positive.

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Sectoral & Global Cues

Sectoral momentum remained strong, with pharma, metals, oil & gas, PSU banks, and IT each advancing between 0.5% and 1%. FIIs remained net buyers for the second day, and at the same time, the DIIs increased their liquidity support further.

The revised block deal norms of SEBI have not only helped the market sentiment but also increased the transparency and liquidity in the market.

Globally, investors are waiting for the US Federal Reserve's remarks and employment statistics, which could influence near-term direction.