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The Indian stock market opened higher amid weak global cues, with investors weighing developments in US markets and awaiting Federal Reserve Chair Kevin Warsh’s address at Jackson Hole. The Nifty 50 opened 31.75 points, or about 0.13% higher, at 24,122.60, whereas Bank Nifty opened 80.2 points above its prior close. Sensex rose 195 points to 77,128.05.
The rupee opened marginally higher at Rs. 95.51 per dollar, compared with Thursday’s close of Rs. 95.54.
Foreign institutional investors (FIIs) were net sellers after two consecutive sessions of buying, selling Indian equities worth Rs. 298.26 crore on August 27. Domestic institutional investors (DIIs) recorded purchases, investing Rs. 4,977.17 crore in equities.
The Sensex formed a red daily candle and now trades under its near-term moving averages. That signals weak momentum at higher levels.
The index could not stay above 77,500. After that, it slipped toward 77,000. Each rebound attempt met with more selling. In the last hour, the pressure grew and the Sensex fell below 77,000.
As long as the index stays below 77,000, more downside may drag it toward 76,700, then 76,500. On the topside, immediate resistance is seen at 77,300, followed by 77,500.
Nifty 50 remained choppy with a weak bias on Thursday. Investors trimmed positions in select stocks, so overall breadth looked weak.
On the daily chart, the index printed a bearish candle, falling below the key support line that slopes up close to 24,150.
On the weekly chart, Nifty is nearing the 24,000 support area. The broader trend still looks choppy and tends to turn negative at times. If 24,000 breaks and holds below, the market may weaken more in the short run. The 24,380 is an important resistance point, said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
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Bank Nifty formed a bearish candle on the daily chart, which suggests selling pressure near the higher levels and over the last 17 trading sessions, the index has stayed stuck between 57,001 and 58,077.
Attention is on the 57,100 to 57,000 level, this band acts as a key support zone. If price holds above this zone, the market may stay in its current back-and-forth phase.
On the upside, the 57,900 to 58,000 area may act as an immediate resistance band. A decisive break above 58,000 or a breakdown below 57,000 could mark the end of the current consolidation phase and trigger a directional move, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
