Stock Market Update: Nifty 50 Opened 0.36% Higher, Sensex Climbed 245.48 Points

The Indian stock market opened lower amid rising crude oil prices, higher bond yields and renewed inflation concerns are expected to keep investors cautious, while attention will remain on the upcoming US Federal Reserve policy decision. The Nifty 50 index opened 83 points, or 0.36% higher at 23,201.60 and the Bank Nifty was trading 212.9 points higher than the previous close. Sensex rose 245.48 points to 75,249.31.

Broader indices underperformed, with Nifty Midcap and Smallcap indices shedding over 2% each. The Indian rupee opened higher at Rs. 95.89 per dollar on Wednesday versus the previous close of Rs. 95.96.

Foreign institutional investors (FIIs) were net sellers of Rs. 2,977.86 crore in the cash market on September 15, while domestic institutional investors (DIIs) were net buyers of Rs. 2,686.05 crore.

Sensex Outlook

Technically, the Sensex formed a large bearish engulfing candle, while continuing to trade below all key moving averages. This confirms weakness in the short- and medium-term trend.

Immediate support is placed at 73,500-74,000, while 74,800-75,000 is likely to act as the key resistance zone, said Sachin Gupta, VP of Technical Research at Choice Equity Broking. 

"The broader trading range stands at 73,500-75,000, 

with the index maintaining a sideways-to-bearish bias.”

Nifty 50 Outlook

The technical setup for Nifty 50 has weakened after Tuesday's sharp decline. The index formed a bearish candle on the daily chart after opening higher but failing to sustain gains. It also breached last week's low of 23,231, indicating that the downward trend remains intact. 

"Going ahead, bias remains down below 23,600 levels, being the Monday's high and last week's breakdown area. A follow-through weakness will open downside towards 23,000 and 22,800 levels in the coming sessions. Only a formation of higher highs and higher lows on a sustained basis in the daily chart and a move above 23,600 will signal a pause in the current downtrend," said Bajaj Broking Research.

A sustained move above 23,600 could provide some relief to the market. On the downside, 23,000 and 22,800 are likely to remain important levels to watch.

Also Read: US Stock Futures Slip as Treasury Yield Tops 5% Ahead of Fed Decision

Bank Nifty Outlook

Bank Nifty formed a large bearish candle and closed around the 56,000 level, keeping the near-term trend under pressure. 

"Index is currently placed around the lower band of the last 11-week range 56,000-58,700. A breach and close below last week's low of 55,700 levels will signal extension of the corrective decline towards 55,200 and 54,800 levels in the coming sessions," said Bajaj Broking Research. 

The 57,000 level is likely to act as an important hurdle for the index. A sustained move above this level could signal some pause in the ongoing decline. However, a break and close below 55,700 could extend the corrective move towards 55,200 and 54,800.