The Indian stock markets are expected to open higher on Thursday, supported by mixed global cues and a sharp decline in oil prices. GIFT Nifty was trading at 24,133.5, indicating a gap-up start with a premium of 110.5 points over the previous Nifty futures close.
Brent crude futures fell 1.80% to $72.41 a barrel, while US West Texas Intermediate (WTI) dropped 1.59% to $69.22 a barrel. The fall in crude prices is seen as a positive for India, a major oil importer, as it helps reduce input costs and inflation pressures.
Previous Session Recap
On Wednesday, the Sensex surged 790.54 points, or 1.04%, to close at 76,991.22, while the Nifty 50 advanced 197.55 points, or 0.83%, to settle at 24,021.65. Foreign Institutional Investors (FIIs) remained net sellers, offloading shares worth Rs. 1,843 crore. Domestic Institutional Investors (DIIs) net bought Rs. 3,637 crore, providing support to the market.
Sector-wise, Realty and IT indices outperformed, rallying over 2%, whereas the Defence index was the worst performer, shedding over 2%.
Sensex Technical Outlook
Technically, the Sensex formed a promising reversal pattern on intraday charts and a bullish candle on daily charts. Shrikant Chouhan, Head of Equity Research at Kotak Securities, said, “We are of the view that as long as the market is trading above 76,700, the pullback formation is likely to continue. On the higher side, the rally could extend to 77,500-77,700. On the flip side, below 76,700, sentiment could change. Below this level, the market could retest 76,400-76,200.”
Nifty 50 Technical Outlook
The Nifty 50 staged a strong rebound on Wednesday and managed to close above the psychologically important 24,000 level. On the daily chart, the index formed a bullish piercing line candlestick pattern, indicating strong buying demand near the support zone around 23,800. This support area is significant as it coincides with the previous gap zone and the confluence of the 20-day and 50-day exponential moving averages (EMAs).
Bajaj Broking Research noted, “Nifty managed to hold above the support area of 23,800 and witnessed a pullback. Going ahead, bias remains positive and the index is expected to head higher towards last week’s high of 24,190 levels in the coming session. Dips, if any, towards 23,900 should be used as a buying opportunity.” Immediate support is seen around 23,900, while stronger short-term support is placed in the 23,500-23,600 zone. On the upside, the next major resistance is near 24,600.
Bank Nifty Technical Outlook
The Bank Nifty rose 966.60 points, or 1.69%, to close at 58,150.35, forming a bullish engulfing pattern on the daily chart. Bajaj Broking said, “Going ahead, bias remains positive and the index is expected to gradually head towards 59,200 levels in the coming sessions, being the measuring implication of the recent range breakout and the 138.2% external retracement of the previous decline 57,456-52,783.” Technical indicators continue to support the positive outlook. The lows recorded over the past two weeks near 57,000 remain a crucial support zone, and the index is expected to maintain its bullish bias as long as it holds above this level.
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.