Indian benchmark indices poised for steady open amid cautious global sentiment

Indian benchmark indices are expected to open on a steady note Wednesday, tracking broader global market gains. However, underlying sentiment remains cautious as rising geopolitical tensions in the Middle East cap investor enthusiasm.

Early indicators point to a muted start for the session. The Gift Nifty was trading around the 24,032 level, representing a slight premium of nearly 8 points from the Nifty futures’ previous close.

This follows a broad sell-off on Tuesday. The Sensex plunged 561.46 points, or 0.72 percent, to close at 77,054.94. The Nifty 50 settled 158.95 points, or 0.66 percent, lower at 24,052.05.

Technical Levels to Watch

Market professionals are now watching key technical levels to gauge the next directional move. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the intraday market texture appears non-directional.

Chouhan identified 77,000 as a crucial support zone for the Sensex, with 77,300 acting as key resistance. A sustained break below 77,000 could accelerate selling pressure toward the 50-day simple moving average near 76,000 to 76,300.

The Nifty 50 recently formed a bearish candle resembling an inverted hammer. Nagaraj Shetti, a senior technical research analyst at HDFC Securities, described this as an inside day formation amidst range movement.

While the short-term trend remains choppy with a weak bias, Shetti emphasized that the near-term uptrend status is still intact. Immediate resistance sits around 24,300 and 24,500, with lower support near 23,800.

The financial sector faced heavier pressure, with the Bank Nifty index slipping 669.15 points, or 1.15 percent, to 57,462.30 on Tuesday. Despite this weakness, the index continues to trade above its key moving averages.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, pointed to a lack of directional strength in momentum indicators, suggesting a sideways bias. He expects the 56,800 to 56,900 zone to act as immediate support.

Bajaj Broking Research highlighted that the Bank Nifty has been consolidating between 56,500 and 58,700 over the past five weeks. A decisive close above the June high of 58,700 is required to confirm a breakout toward 60,000.

Until a clear breakout or breakdown occurs, traders are advised to maintain disciplined risk management. A buy-on-dips approach remains viable as long as the benchmark indices hold above their immediate support zones.