Sensex, Nifty 50 Expected to Open Higher Despite Technical Weakness
Indian markets are set for a gap-up opening with Gift Nifty at 184-point premium, though technical weakness persists. Sensex closed at ₹81,909.63 (-0.33%) and Nifty at ₹25,157.50 (-0.30%) on Wednesday. Key support levels identified at ₹25,000 for Nifty and ₹81,100 for Sensex, with increased volatility reflected in 7% VIX rise to 13.60.
*this image is generated using AI for illustrative purposes only.
Indian stock market benchmark indices are expected to open higher on Thursday, tracking a global market rally amid easing geopolitical tensions. The Gift Nifty was trading around the 25,362 level, representing a premium of nearly 184 points from the Nifty futures' previous close, indicating a gap-up start for domestic markets.
Wednesday's Market Performance
The previous trading session saw Indian markets end lower amid high volatility, with both benchmark indices closing below key psychological levels.
| Index | Closing Level | Points Change | Percentage Change |
|---|---|---|---|
| Sensex | ₹81,909.63 | -270.84 | -0.33% |
| Nifty 50 | ₹25,157.50 | -75.00 | -0.30% |
| Bank Nifty | ₹58,800.30 | -603.90 | -1.02% |
Sensex Technical Outlook
Technical analysts note that Sensex formed a long-legged Doji candlestick pattern on daily charts, indicating indecisiveness between bulls and bears. Shrikant Chouhan from Kotak Securities suggests level-based trading as an ideal strategy given the current market volatility.
| Support/Resistance Levels | Sensex Levels |
|---|---|
| Key Support | ₹81,700, ₹81,500 |
| Key Resistance | ₹82,600, ₹83,000 |
| Critical Level | ₹81,500 (sentiment change below) |
Mayank Jain from Share.Market highlights that the technical structure remains weak as Sensex continues trading below short-term moving averages. The ₹81,100 zone has emerged as a primary demand area, with a breach potentially opening doors for a slide toward ₹80,500.
Nifty 50 Analysis and Key Levels
The Nifty 50 index formed a doji candle with wicks on both sides, reflecting ongoing market indecision. Nagaraj Shetti from HDFC Securities notes this pattern typically calls for reversal confirmation after a reasonable decline.
| Technical Parameters | Nifty 50 Levels |
|---|---|
| Immediate Support | ₹25,120, ₹25,000 |
| Key Resistance | ₹25,200 (sustainable move needed) |
| 200-day EMA | ₹25,150 |
| 100-day MA | ₹25,580 |
The ₹25,000 mark serves as a vital psychological base, with the highest Put Open Interest concentrated at this level. Aggressive Call writing at the ₹25,500 strike suggests this level will act as a major barrier to upward momentum.
Nilesh Jain from Centrum Broking notes that the Relative Strength Index has entered deeply oversold territory at 28.00, suggesting potential for a short-term pullback. However, the broader trend remains weak as long as Nifty trades below its 100-day moving average at ₹25,580.
Bank Nifty Technical Structure
Bank Nifty showed the most significant weakness, ending 1.02% lower and forming a clear lower-high, lower-low structure on intraday charts. The index consolidated between ₹58,800-₹59,000, highlighting persistent supply at higher levels.
| Bank Nifty Levels | Values |
|---|---|
| 50-day EMA | ₹59,040 |
| 100-day EMA Support | ₹58,200-₹58,100 |
| Immediate Resistance | ₹59,100-₹59,200 |
| Extended Downside Target | ₹57,800 |
Sudeep Shah from SBI Securities points out that momentum indicators continue weakening, with RSI in declining mode near the 40.00 level. The probability of a strong pullback remains limited unless Bank Nifty decisively reclaims its 50-day EMA.
Market Volatility Indicators
The India VIX rose by 7.00% to close at 13.60, indicating increased market uncertainty and contributing to the prevailing cautious sentiment among traders and investors.
While Gift Nifty indicates a positive opening, analysts emphasize that the underlying technical structure remains fragile, with key support levels requiring defense to prevent further downside momentum.
20
