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The Indian stock market opened lower amid high crude oil prices and escalating geopolitical tensions, weighing on investor sentiment. Nifty 50 opened 123.6 points lower at 22,687.75 from the previous day's close, while Bank Nifty started at 54,734.45, down 242.45 points. Sensex edged lower by 366.36 points to 73,343.33.
The broader markets underperformed the benchmark indices, with the Nifty Midcap and Smallcap indices declining more than 2% each. The Indian rupee opened flat at Rs. 94.46 per dollar on Thursday compared to the previous close of Rs. 94.46.
Sensex slipped below 74,500, with selling pressure intensifying after the breakdown. On the daily chart, the index formed a bearish candle, while the intraday lower-top formation suggests a broadly negative setup.
For day traders, 73,000 would act as the immediate support level, followed by 72,800. A sustained move above 73,500 could trigger a recovery towards 73,700. Conversely, a decisive break below 73,000 could intensify selling pressure, potentially pushing the index towards 72,800.
Nifty 50 formed its second consecutive bearish candle on Wednesday, with a lower high and a lower low indicating that the corrective trend remains in place. The Nifty is currently seen trading within a broad range of 22,500 to 23,150. On the downside, the 22,500-22,400 zone is an important support area. This range represents the 80% retracement level of the recent pullback from 22,180 to 23,175.
A sustained move below this support zone could increase selling pressure, while a recovery above the immediate resistance levels would be needed to improve the short-term outlook.
“On the higher side key level to watch is Monday's high of 23,175, only a move above the same will signal pullback towards 23,300 and 23,500 levels in the coming sessions being the 50% retracement of the entire recent decline from 24,774 to 22,180,” stated Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking, Bajaj Broking Research.
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Bank Nifty also remained under pressure on Wednesday, forming a bearish candle with a lower high and a lower low for the second consecutive session. The near-term outlook for Bank Nifty remains cautious, with the 54,700 level emerging as an important support to monitor. A sustained move below last week's low of 54,700 could open the door for further downside towards 54,000-53,500 in the coming sessions.
“Going ahead, a follow through move below last week's low of 54,700 will open further downside towards 54,000-53,500 levels in the coming sessions. Index has key short-term support at 53,500-54,000 being the confluence of the recent low and the key retracement of the previous major up move,” said Mukherjee.
On the upside, 55,300 is the immediate level to watch. A sustained move above this mark could signal a recovery towards 56,000.
