Indian benchmark indices brace for steady open amid global market caution
Indian equity benchmarks are expected to open flat on Friday as investors weigh rising crude prices and global semiconductor weakness against strong domestic support levels.
Indian stock market benchmarks are projected to open steadily on Friday, tracking muted cues from global markets. The Gift Nifty indicated a flat start, trading around the 24,098 level, representing a marginal premium of nearly two points over the previous close of Nifty futures.
This cautious sentiment follows a largely indecisive session on Thursday. The Sensex closed marginally higher by 1.44 points at 77,186.87, while the Nifty 50 settled fractionally lower by 5.75 points, or 0.02%, at 24,072.75.
Market participants remain on edge due to rising crude oil prices and a broader selloff in global semiconductor stocks. These macroeconomic headwinds are currently offsetting domestic resilience, forcing traders to adopt a wait-and-watch approach.
Technical Levels to Watch
Technical analysts note that the Nifty 50 is currently in a consolidation phase. Sachin Gupta, VP of Technical Research at Choice Broking, highlighted that significant Call Open Interest is concentrated at the 24,100 to 24,200 strikes, while Put Open Interest remains strong between 24,000 and 24,100.
This options data reinforces the 24,000 zone as a critical support area. Riyank Arora, Associate Vice President at Hedged.in, noted that the broader outlook stays constructive as long as these levels remain intact. "Traders may continue to adopt a buy-on-dips strategy while maintaining disciplined risk management," he added.
The broader market index exhibits similar range-bound characteristics. Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated that the Sensex is likely to maintain its current texture between 77,000 and 77,500. He warned that a drop below 77,000 would likely accelerate selling pressure toward the 76,300 level.
Meanwhile, the Bank Nifty index faces near-term headwinds after closing 0.30% lower at 57,582.25 on Thursday. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, pointed out that the index is oscillating near its 20-day EMA, with crucial resistance at the 58,100 to 58,200 zone.
Om Mehra, Technical Research Analyst at SAMCO Securities, observed that the banking index recently slipped below its middle Bollinger Band, signaling fading bullish momentum. He noted that a sustainable breakdown below the 57,000 support level could drag the index down to 56,500.
