The Indian stock market opened lower amid improving corporate earnings and recent strength in IT stocks, providing some support. Nifty 50 opened 6.2 points or 0.03% lower at 22,715.75 from the previous day's close, while Bank Nifty started at 55,406.70, up 74.35 points. Sensex edged higher by 15.98 points to 73,049.76.
Broader markets also ended higher but underperformed the benchmark indices, with the Nifty Midcap index rising 0.7%, while the Smallcap index closed flat. The Indian rupee opened 28 paise higher at Rs. 95 per dollar on Wednesday versus the previous close of Rs. 95.28.
Foreign institutional investors (FIIs) were net sellers of Rs. 1,305.13 crore in Indian equities on Tuesday, while domestic institutional investors (DIIs) net bought Rs. 2,439.24 crore, according to the exchange's provisional data.
Sensex Outlook
According to Sachin Gupta, VP, Technical Research at Choice Equity Broking Private Limited, Sensex’s overall outlook has improved following the strong recovery, with the index closing above the previous four sessions’ highs and momentum indicators turning more favourable. A sustained hold above 72,400–72,650 could support further upside towards 73,300–73,700.
However, Gupta warns that the index must decisively clear the resistance zone to confirm the continuation of the recovery. He further added, “Failure to sustain above the breakout levels could lead to consolidation or renewed selling pressure, so traders should monitor price action and changes in open interest before taking fresh positions.”
Nifty 50 Outlook
Nifty 50 has an immediate support zone at 22,500-22,550, while resistance is likely around 22,750-22,850. The broader approach remains cautiously positive as long as the index holds the key support zone.
Any stabilization around these levels could attract buying interest, making a buy-on-dips approach preferable to chasing the downside. A recovery towards 22,750-22,850 is possible if buying momentum improves. However, a decisive break below 22,500 could weaken the setup and trigger further selling.
Also Read: Wall Street Mixed as Dow Rises 0.7%, Nasdaq Falls on Tech Stock Losses
Bank Nifty Outlook
Bank Nifty has been consolidating within a tight range of 54,200-55,400 for more than a week. After remaining range-bound, prices have broken out of the range.
The RSI has also crossed above its previous swing high and moved towards 48, indicating improving near-term momentum. The bearish gap around 55,900-56,200 represents the immediate resistance zone. A move above this zone could take the index towards the 57,000 mark. On the downside, 55,000-54,800 is the immediate support zone