The Indian stock market opened sharply lower on Friday, weighed down by a continued surge in crude oil prices that dampened investor sentiment. The Nifty 50 index started the session 207.5 points or 0.88% lower at 23,270.30, while the Sensex fell 593.43 points to 74,309.16. The Bank Nifty also opened 501.8 points below its previous close.
Broader market indices mirrored the weakness, with the Nifty midcap index slipping 0.4% while the smallcap index remained flat. The Indian rupee weakened further, opening 24 paise lower at Rs 95.68 against the US dollar, compared to its previous close of Rs 95.44.
According to NSE data, foreign institutional investors turned net sellers on Thursday, offloading equities worth Rs 438.24 crore. In contrast, domestic institutional investors remained buyers, purchasing a net Rs 1,025.85 crore worth of Indian shares.
Sensex Outlook
Technically, the short-term outlook for the Sensex remains weak, but oversold conditions could trigger a pullback. “For day traders, 74,700 would act as key support zones, while 75,000 would be the immediate hurdle for the bulls. A move above 75,000 could extend the bounce back to 75,500-75,700. Conversely, below 74,700, selling pressure is likely to accelerate, potentially dragging the index to 74,500-74,200,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nifty 50 Outlook
The Nifty 50 formed a high-wave candle on the daily chart with a lower high and lower low, indicating consolidation with a corrective bias. Weakness could extend the recent one-month decline toward the 23,300-23,200 zone in the coming sessions—the 80% retracement level of the prior up move from 23,070 to 24,774.
On the upside, a pullback is possible if Nifty holds above Thursday’s low of 23,380. “A pullback attempt will face immediate resistance at Wednesday’s gap area of 23,650, with stiff resistance around 23,800-24,000 levels—the recent breakdown zone and the 20-day EMA. The previous support area is likely to reverse its role and act as resistance in the short term,” explained Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking.
Bank Nifty Outlook
The Bank Nifty formed a small bullish candle on its daily chart in the prior session, but the pattern of lower highs and lower lows persists, signaling consolidation with a corrective bias. The index currently trades near the lower end of its 10-week range of 56,000-58,700. A break below 56,000 could trigger further downside toward 55,300 and 54,800 in the coming weeks.
“The immediate bias remains down, and only a sustained formation of higher highs and higher lows on the daily chart would signal a pause in the downtrend. Sustaining above 56,000 on a closing basis would indicate a continuation of the 10-week consolidation,” added Mukherjee.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research before making any investment decisions.
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