1 week ago
GIFT Nifty Signals Shift From Positive To Negative Market Open
Indian stock markets had a different outlook on Wednesday and Thursday.
GIFT Nifty first pointed to a stronger opening, but later indicated that Thursday could start lower.
Falling oil prices and bond yields helped investors feel somewhat better.
However, hotter-than-expected US inflation and geopolitical concerns kept markets cautious.
Analysts said the Nifty 50 could rise if it breaks above important resistance levels.
They also warned that falling below support could cause more weakness.
The Sensex experienced selling and remained below an important long-term average.
Nifty Bank stayed inside a wide range, so investors are waiting for a clear move up or down.
GIFT Nifty rose 87.80 points to 24,559.50 for Wednesday, but fell 68.10 points to 24,461 for Thursday.
Global markets were supported by lower crude prices and bond yields, though US stocks weakened after hotter-than-expected inflation data.
Nifty 50 resistance was identified around 24,400-24,600, while support levels ranged from 24,000 to 24,240.
Sensex faced profit booking, with support at 76,900-77,000 and resistance around 77,700-78,000.
Nifty Bank remained in consolidation between 56,500 and 58,700, with a decisive move above or below resistance and support needed for direction.
- Who
- Indian equity investors, foreign portfolio investors, domestic institutional investors, and market analysts.
- What
- Analysts assessed the outlook for the Nifty 50, Sensex, and Nifty Bank using global market signals and technical levels.
- Where
- Indian equity markets, with signals from Asian markets, Wall Street, commodity markets, and global currency and bond markets.
- When
- The first outlook concerned Wednesday and the second concerned Thursday; the reported market moves occurred on Tuesday and Wednesday.
- Why
- Lower crude prices and bond yields supported sentiment, while US inflation, geopolitical tensions, and selling at higher levels created caution.
Potential Upside
Downside Risks And Conditions
Nifty 50 direction
Potential Upside
A move above 24,300-24,500 could extend the rally toward 24,500-24,600, supported by improving momentum and a prior bullish engulfing pattern.
Downside Risks And Conditions
The market structure was described as weak or subdued, with a fall below 24,100-24,000 potentially opening the way toward 23,950.
Sensex outlook
Potential Upside
A sustained move above 77,800 could strengthen the recovery and potentially lift the index toward 78,300-78,500.
Downside Risks And Conditions
Profit booking and trading below the 200-day EMA weakened the setup; a break below 77,000 could lead toward 76,700.
Nifty Bank direction
Potential Upside
A sustained move above 58,000-58,200 could trigger an advance toward 58,400-58,700.
Downside Risks And Conditions
Failure to clear the resistance zone could prolong consolidation or lead the index toward support near 57,000 and the broader range floor at 56,500.
Key facts
- Wednesday GIFT Nifty
- 24,559.50, up 87.80 points or 0.36 per cent.
- Thursday GIFT Nifty
- 24,461, down 68.10 points or 0.28 per cent.
- Wednesday FPI-DII flows
- FPIs were net sellers of Rs 1,181.66 crore and DIIs were net buyers of Rs 2,493.41 crore.
- Thursday FPI-DII flows
- FPIs were net sellers of Rs 502.63 crore and DIIs were net buyers of Rs 6,425.16 crore.
- Nifty 50 levels
- Resistance was cited between 24,300 and 24,600; support levels ranged from 24,000 to 24,240.
- Sensex levels
- Support was identified between 76,900 and 77,125, while resistance ranged from 77,700 to 78,000.
- Nifty Bank range
- The broader consolidation range was 56,500-58,700, with resistance around 58,000-58,200 and support around 57,000-57,300.
- India VIX
- India VIX was 11.75 in the Wednesday outlook and 10.52 in the Thursday outlook, indicating low expected volatility.
Quotes
Bajaj Broking Research
Research team providing the Bank Nifty outlook
“Within the consolidation index is facing resistance around 58,000 levels. Index sustaining above the same will open upside towards 58,500-58,700 levels in the coming sessions being the upper band of the recent consolidation. While failure to move above 58,000 levels will signal consolidation in the range 57,000-58,000 levels in the coming sessions.”
businesstoday.in
“Sentiment was primarily driven by easing crude prices and global bond yields, which helped improve global risk sentiment. We recommend maintaining a cautious stance on the index and focusing on relatively stronger sectors for long positions, while adhering to disciplined risk management.”
businesstoday.in
Sources
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