Nifty 50 Opens Flat at 22,599, Sensex Rises 29 Points After RBI’s 25bps Rate Hike

The Indian stock market opened flat after the Reserve Bank of India raised its key policy rate for the first time in nearly four years. Nifty 50 opened 4 points, or 0.02%, lower at 22,599.05 from the previous day's close, while Bank Nifty started at 55,042.90, down 12.95 points. Sensex edged higher by 29.3 points to 72,668.

Broader indices ended mixed, with the Nifty Midcap index down 0.6% and the smallcap index up 0.3%. The Indian rupee opened higher at Rs. 96.71 per dollar on Thursday, down from Wednesday's close of Rs. 96.77.

Foreign institutional investors (FIIs) sold Indian equities worth Rs. 6,121.40 crore on Wednesday, while Domestic institutional investors (DIIs) net bought Rs. 4,596.60 crore, according to the NSE.

Sensex Outlook

Sensex remained under pressure and failed to sustain above the 73,000 level, extending the cautious tone in the market. 

“Looking ahead, the Sensex continues to trade sideways, with the 72,000-72,300 support zone crucial for maintaining stability. A decisive move above 73,000-73,200 could strengthen buying interest and open the way for further recovery, while a sustained break below 72,000 may revive the bearish momentum. For now, the index remains caught between strong Put support and Call resistance, suggesting that traders should wait for a clear breakout or breakdown before taking positions,” said Sachin Gupta, VP, Technical Research at Choice Equity Broking Private Limited.

Nifty 50 Outlook

After some bounce back in the last couple of sessions, Nifty 50 failed to sustain the highs and fell on the backdrop of a 25bps rate hike by the RBI at its MPC meeting. 

A bearish candle was formed on the daily chart. Nifty 50 seems to have turned down from near the immediate resistance of 22,800 levels. It looks like a formation of a new lower top at Tuesday's high of 22,776. However, sharp follow-through weakness in the coming session could confirm a lower top formation. 

Further weakness from here could find support around 22,400 and the next 22,200 levels. Any bounce back could find resistance around 22,800 and the next 23,100 levels in the near term.

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Bank Nifty Outlook

Bank Nifty continues to trade below its key short- and long-term moving averages, suggesting the broader trend remains cautious. Currently, momentum indicators are largely neutral, indicating a consolidation phase rather than a directional trend. 

“Going forward, the 20-day EMA zone of 55,500-55,600 is likely to act as an important resistance area. On the downside, the 54,500-54,400 zone remains a crucial support band. A decisive breakout above resistance or a breakdown below support is likely to trigger a meaningful trending move in the index,” noted Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.