The Indian stock market opened higher as global cues weakened sharply amid selling in AI and technology stocks pulled Wall Street lower and dragged into Asian markets. Nifty 50 opened 54.55 points higher at 22,742.20 from the previous day's close, while Bank Nifty started at 54,965.75, up 40.05 points. Sensex edged up by 416.25 points to 73,665.64.
The broader markets continued to underperform the benchmark indices, with the Nifty Midcap and Smallcap indices declining around 1% each. The Indian rupee opened with marginal gains at Rs. 94.79 per dollar on Friday versus previous close of Rs. 94.82.
Foreign institutional investors (FIIs) returned to selling in Indian equities on Thursday, offloading a net Rs. 3,458.70 crore. Domestic institutional investors (DIIs) bought a net Rs. 2,891.32 crore.
Sensex Outlook
Technically, after an intraday decline, Sensex found support near 73,000 and then reversed. After the rebound, it remained in the 73,200-73,500 range for the rest of the day.
“For traders, 73,200 and 73,000 would be important support levels. If the market manages to trade above these levels, a pullback could continue towards 73,700. Further gains could take the index to 74,500. However, below 73,000, selling pressure is likely to increase, and the market may slide towards 72,700-72,500,” said Shrikant Chouhan, Head Equity Research, Kotak Neo.
Nifty 50 Outlook
The Nifty 50 extended its decline for the third consecutive session. On the daily chart, the index formed a Doji candle, indicating indecision. The immediate support zone is at 22,700, while 22,900-23,000 will act as the key resistance zone.
The market needs to sustain above 23,000 to signal a meaningful improvement in momentum. Until Nifty decisively moves above this level, a sell-on-rise approach remains preferable. A sustained breakout above 23,000 could change the near-term outlook and open the door for further recovery. On the downside, a break below 22,700 could bring renewed weakness.
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Bank Nifty Outlook
Bank Nifty continues to show weakness, trading below its key daily moving averages. The 55,600 level remains a crucial resistance level where selling pressure is likely to emerge. As long as the index sustains below this level, the short-term bias is expected to remain sideways to bearish, favouring a sell-on-rallies approach, with downside targets in the 54,400-54,000 range.