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The Indian stock market opened lower in line with mixed global trends. Nifty 50 opened 22.5 points or 0.09% lower at 24,343.45, while Bank Nifty started 72.8 points or 0.13% below its previous close. Sensex fell 116.33 points to 77,892.92.
The broader market underperformed, with the Nifty midcap index falling 0.5% and the smallcap index declining 0.7%.
Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth Rs. 508.12 crore on August 14, while Domestic Institutional Investors (DIIs) also continued to buy, buying shares worth Rs. 14,295.49 crore.
The rupee opened 4 paise weaker against the US dollar at Rs. 95.48, compared to Friday's close of Rs. 95.44.
Technically, the Sensex is still trading above its 50-day EMA, yet it remains below the 200-day EMA, which keeps the short-term view range-bound, with a mixed bias. On the support side, 77,400-77,600 is an important zone, and the resistance is seen at the 78,300-78,500 area.
"It remains range-bound with a cautious bias as it trades above the 50-Day EMA but below the 200-Day EMA. Sustaining above the 77,400-77,600 support zone can keep the recovery structure intact, while a decisive move above 78,300-78,500 would strengthen the near-term outlook. A buy-on-dips approach remains preferable," said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.
The Nifty 50 kept moving sideways in a consolidation phase on Friday, and it closed lower. Looking at the weekly chart, the Nifty 50 printed a red candle after a doji-like pattern near the top end of last week, which hints at a possible false breakout beyond the important 24,500-24,600 resistance area.
The index managed to hold a higher bottom structure across the past couple of months, indicating the current dip could just be another higher-bottom formation. If the selling pressure stays, it might push the Nifty 50 toward 24,200-24,000 with 24,500 as the near-term resistance, said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
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Nifty Bank formed a small-bodied candle with shadows on either side, indicating indecision. The index continues to remain in a phase of consolidation.
"Going ahead, the immediate resistance for Bank Nifty is placed in the 57,900-58,000 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 58,400, followed by 58,800 in the short term. On the downside, the immediate support for Bank Nifty is placed in the 57,100-57,000 zone," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
