Indian benchmarks face lower open as technical indicators signal caution
India’s benchmark indices are expected to open lower on Thursday following a subdued Wednesday close, as weakening technical momentum and mixed global cues leave investors cautious about near-term directional moves.
India’s benchmark indices are expected to open lower on Thursday following mixed global cues and a subdued close in the previous session. The Gift Nifty indicated a red start, trading at 24,358.5, which represents a 70-point discount to the Nifty futures’ previous close.
During Wednesday's session, the BSE Sensex dropped 183.15 points, or 0.24%, to finish at 77,472.94. The broader Nifty 50 also retreated 126.80 points, or 0.52%, to settle at 24,207.75, failing to sustain Tuesday's recovery after a 68-point decline during the closing auction.
The underlying momentum remains subdued, with the index trading below its 200-Day exponential moving average. Sachin Gupta, VP of Technical Research at Choice Equity Broking, noted that the relative strength index stands at 48.40, indicating a sideways to cautious market bias. Rupak De, a senior technical analyst at LKP Securities, added that the RSI has entered a bearish crossover, signaling weakening momentum and a continuation of range-bound trading.
For the Sensex, immediate support is positioned in the 76,900 to 77,000 zone, according to Gupta. Mayank Jain, a market analyst at share.market by PhonePe, identified a deeper structural support area between 76,300 and 76,500, which must hold to preserve the medium-term recovery. On the upside, Gupta sees resistance between 77,700 and 78,000, while Jain points to 78,400 to 78,600 as the primary hurdle for a fresh upmove.
The Nifty 50 is currently confined within a broader range of 24,100 to 24,400, according to Nagaraj Shetti, a senior technical research analyst at HDFC Securities. Shetti emphasized that a decisive move above 24,400 to 24,500 is required to confirm a breakout and pave the way for sustainable upside. Conversely, De warned that a drop below 24,130 could trigger a sharper correction, potentially dragging the index toward 23,900 and 23,700.
Despite the benchmark reversal, Shetti noted that broader market breadth remained positive, with wider indices outperforming the main gauge. In the banking sector, Sudeep Shah, head of technical and derivatives research at SBI Securities, observed that the Bank Nifty formed a bullish candle with an upper shadow due to profit-booking at higher levels. Shah expects the banking index to remain range-bound, with immediate support at 57,200 to 57,300 and key resistance at 58,100 to 58,200.
