Indian Markets Set for Positive Open After Seven-Session Losing Streak
Indian benchmark indices are projected to open higher on Thursday following a seven-day decline, though analysts warn that critical technical support levels will dictate the market's near-term trajectory.
Indian benchmark indices are expected to open higher on Thursday, driven by positive global cues and early indicators. The Gift Nifty was trading at approximately 24,208, reflecting a 90.4-point premium over the Nifty futures’ previous close. This anticipated rebound follows a challenging period for domestic equities.
During the previous session, domestic indices recorded their seventh consecutive daily decline. The Sensex dropped 325.78 points, or 0.42 percent, to settle at 76,909.68. The Nifty 50 fell 76.60 points, or 0.32 percent, closing at 24,078.30 and slipping below the 24,100 threshold.
Market professionals are closely monitoring these levels for signs of a sustained reversal. Sachin Gupta, Vice President of Technical Research at Choice Equity Broking, noted that the Sensex has closed lower for three straight sessions, indicating persistent bearish pressure. He highlighted that the index remains under all key daily moving averages, with the Relative Strength Index at 41.78 signaling weakening momentum.
Gupta added that the Put-Call Ratio of 0.88 reinforces a cautious, near-term negative bias. For the Sensex to regain stability, it must reclaim the 77,270 to 77,400 resistance zone. Conversely, holding the 76,500 to 76,750 support band is critical to preventing further downside.
On the broader Nifty 50, analysts see a confluence of technical factors at play. Vatsal Bhuva, a Technical Analyst at LKP Securities, observed that the index found support near the lower band of its rising channel and filled a daily gap. He pointed out that the 61.80 percent Fibonacci retracement level aligned with this key support zone.
Bhuva identified immediate support for the Nifty 50 between 24,000 and 24,050, advising investors with long positions to maintain strict stop-losses at 24,000. A sustained break below this level could intensify bearish sentiment. Hitesh Rathi, Technical Analyst at Angel One, echoed this caution, noting stronger support lies at 23,900 if the initial band fails.
Rathi emphasized that the market has corrected from recent highs around 24,800, warranting continued prudence. He advised market participants to wait for a clear trend reversal before initiating aggressive long positions, with immediate upside resistance capped in the 24,200 to 24,300 range.
The financial sector also faces near-term headwinds. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, reported that the Bank Nifty closed at 57,158 after drifting lower in a narrow range. Shah warned that a sustained move below the 56,800 to 56,700 support zone could drag the index toward 56,300 or even 56,000 in the short term.
