The Indian market began the session in the red despite a supportive global backdrop from record highs on Wall Street. Investor sentiment remained subdued due to elevated US Treasury yields and caution ahead of the Reserve Bank of India’s policy decision. The Nifty 50 opened down 85.65 points, or 0.38%, at 22,690.45 compared to its previous close, whereas Bank Nifty started at 54,968.70, marking a gain of 159.7 points. Meanwhile, the Sensex inched up 102.43 points to 72,965.38.
Broader market indices also finished the session higher, as the Nifty Midcap index advanced 1% and the Smallcap index gained 1.5%. On Wednesday, the Indian rupee opened flat at Rs. 96.42 per dollar, matching the previous close. NSE figures show that foreign institutional investors (FIIs) offloaded Rs. 2,961.30 crore worth of Indian equities on Tuesday, while domestic institutional investors (DIIs) purchased Rs. 5,088.92 crore.
Sensex Outlook
Sensex opened on an upward trajectory and sustained its positive momentum during the previous session, printing a bullish candle on the daily chart. An intraday pullback points to the possibility of additional upside from current levels.
“For day traders, 72,500 will act as a key support zone. As long as the market holds above this zone, the pullback is likely to continue. On the upside, the market could rebound to 73,300-73,500. Conversely, a fall below 72,500 would make the uptrend vulnerable. Below this level, the market could slip to 72,200-72,000,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.
Nifty 50 Outlook
Nifty 50 faces immediate resistance at the 22,900-23,000 range, with its primary support established between 22,500 and 22,600. Volatility is expected to stay high with the RBI policy announcement slated for today. Positive sentiment will persist as long as the index maintains the 22,500-22,600 support band, allowing traders to weigh a buy-on-dips strategy near this area.
Momentum could improve and pave the way toward 23,000 if there is a sustained push past 22,900. Conversely, a decisive drop below 22,500 would degrade the technical setup and likely invite further selling pressure.
Also Read: US Stock Market: Wall Street Edges Higher as S&P 500 Hovers Near Record, Yields Slip
Bank Nifty Outlook
Bank Nifty has climbed over the preceding four sessions via a pattern of higher highs and higher lows, indicating that buying interest is returning around the support area.
Prices have repeatedly encountered a barrier near 55,300 across recent sessions, making the post-policy price action around this threshold critical. Surpassing 55,300-55,400 could ignite fresh upward momentum pointing toward 56,000.
Support is presently situated around 54,500-54,300 on the downside. At present, the index is waiting for direction from the policy outcome.
