Indian equity markets are likely to be in cautious mood today, with the Sensex and Nifty expected to trade in a narrow range amid mixed global cues and weak signals from GIFT Nifty. With US markets closing lower overnight and technical indicators still pointing to near-term weakness, traders may adopt a wait-and-watch approach, focusing on key support levels for direction.
GIFT Nifty was trading slightly lower early morning, indicating a flat to mildly negative start. Overall sentiment remains guarded, with volatility expected to stay elevated through the session.
The markets ended the previous session in the red. The BSE Sensex fell 250 points, or 0.30 percent, to close at 83,627.69, while the Nifty 50 slipped 58 points, or 0.22 percent, to settle at 25,732.30.
The Nifty opened higher at 25,897 but failed to sustain early gains and gradually moved lower during the session. The index touched an intraday low of 25,603 before recovering marginally towards the close.
Sectoral performance was mixed. PSU banks, media, IT, and metal stocks outperformed, while realty, pharma, and auto stocks came under pressure.
From a technical standpoint, the Nifty continues to trade below its short-term moving averages, reflecting a negative bias in the near term. The formation of a bearish candle on the daily chart suggests continued caution.
Immediate intraday support is seen around 25,700. A decisive break below this level could lead to further downside pressure. On the upside, resistance is placed between 25,815 and 25,940, which may cap any recovery.
Nifty levels to watch
Intraday support: 25,700 – 25,600 – 25,475
Intraday resistance: 25,815 – 25,940 – 26,050
Positional support: 25,450 – 25,250
Positional resistance: 25,750 – 26,300
Bank Nifty closed marginally higher at 59,578.80, gaining 128 points, indicating mild resilience in banking stocks. However, technical indicators still suggest a cautious outlook.
Immediate support is placed at 59,350, while resistance is seen near 59,600. A clear move above resistance could extend the recovery, while failure to hold may result in sideways to slightly negative trade.
Bank Nifty levels to watch
Intraday support: 59,350 – 59,130 – 58,850
Intraday resistance: 59,600 – 59,830 – 60,050
Positional support: 58,580 – 57,350
Positional resistance: 60,000 – 61,250
Institutional activity remained mixed in the previous session. Foreign institutional investors were net sellers worth ₹1,499.81 crore, while domestic institutional investors supported the market with net buying of ₹1,181.78 crore.
US markets closed lower overnight, with the Dow Jones falling nearly 400 points and the Nasdaq ending marginally lower. European markets finished mixed, while Asian markets opened with selective gains, led by Japan’s Nikkei and Hong Kong’s Hang Seng.
Crude oil traded lower near $65.30 in early trade. Gold and silver were trading higher, indicating some safe-haven demand.
The dollar index was marginally stronger near 99.22, while the rupee was trading around 90.34 against the US dollar in early trade.
Prepared by: Research Desk, MyEquityLab.com. SEBI registered research analyst (registration No: INH000023843)