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The Indian stock market opened lower amid elevated crude oil prices and geopolitical uncertainty, keeping macroeconomic risks in focus. Nifty 50 opened 2.7 points higher at 23,150.85 from the previous day's close, while Bank Nifty started at 55,827.45, down 16.55 points. Sensex edged higher by 120 points to 74,849.30.
The broader markets underperformed, with the Nifty midcap and smallcap indices ending with marginal losses. The Indian rupee opened 9 paise higher at Rs. 94.86 per dollar on Monday compared to the previous close of Rs. 94.95.
Foreign institutional investors (FIIs) turned net buyers on October 16, purchasing equities worth around Rs. 1,166 crore. Meanwhile, domestic institutional investors (DIIs) snapped their 45-session buying streak, offloading equities worth Rs. 3,661 crore.
On the weekly chart, Sensex formed a long bullish candle, while the daily and intraday charts showed an uptrend continuation pattern.
“We believe the short-term market structure remains positive; However, a strategy of buying on dips and selling on gains would be ideal for traders. On the downside, the 20-day SMA near 70,800 and 70,200 could act as key support levels, while 71,700 and 72,300 could act as important resistance zones for bulls. On the other hand, a move below 70,200 could change market sentiment,” said Shrikant Chouhan, Head Equity Research, Kotak Neo.
Nifty 50 extended its recovery for a second consecutive session on Friday, with benchmark indices trading higher following Thursday’s sharp rally. Looking ahead, markets will react to the quarterly earnings of major banking players in early trade alongside developments on the global front over the weekend.
“Technically, the index is approaching the 23,300 mark, and a decisive breakout above this level could extend the recovery towards 23,500-23,700. On the downside, the 22,700-22,900 zone is now expected to provide support. Given the mixed cues and the busy earnings calendar, we maintain a positive yet cautious stance, with an emphasis on selective stock picking and disciplined trade management,” said Ajit Mishra, SVP Research, Religare Broking.
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Bank Nifty has been forming a higher-high, higher-low pattern over the past two weeks. On the daily chart, the index has moved above its 20-day SMA and is moving towards its 50-day SMA.
On the upside, 56,200 is likely to act as an intermediate hurdle. A decisive breakout above this zone could pave the way for a move towards 56,600. On the downside, the structure is expected to provide support during declines towards the 55,000-55,200 zone. However, the crucial support remains firmly placed in the 54,450-54,500 range.
