The Indian stock market opened lower amid decline in oil prices and US President stating he has no plans to launch immediate strikes on Iran. Nifty 50 opened 75.6 points lower at 22,524.40 from the previous day's close, while Bank Nifty started at 54,250.30, down 37.05 points. Sensex edged down by 133.70 points to 72,990.04.
The Indian rupee opened flat at Rs. 94.93 per dollar on Monday against Friday's close of Rs. 94.94. The broader markets underperformed, with the Nifty Midcap and Smallcap indices falling 2.5% and 2.9%.
Foreign institutional investors (FIIs) turned net buyers on October 23, purchasing equities worth Rs. 887 crore. Domestic institutional investors (DIIs) also remained net buyers for the fourth consecutive session, buying equities worth Rs. 3,236 crore.
Sensex Outlook
The 72,300-72,500 zone is the immediate support area for Sensex, while resistance is placed around 73,500-73,800. “The index remains within a broader range of 72,300-73,800, suggesting a sideways bias with a negative undertone. A sustained move beyond either boundary will be important in determining the next directional trend,” said Sachin Gupta, VP, Technical Research at Choice Equity Broking Private Limited.
“From a technical standpoint, the SENSEX opened with a gap-up of around 416 points but encountered resistance soon after the opening, triggering a sharp sell-off. The index slipped below the previous session's range and the 73,000 level, while the 72,500 zone provided support, leading to a mild recovery and the formation of a lower wick on the daily candle,” he further added.
Nifty 50 Outlook
The Nifty 50 formed a bearish candle with a long lower shadow. The index continued to register a lower high and a lower low, signalling the near-term downward bias.
“Going ahead, following weakness below last week's low 22,372 will open downside towards the current month low of 22,180. Index holding above last week's low of 22,372 will lead to consolidation in the range of 22,370-22,850 in the coming week,” noted Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
The 22,372 level is an important support level to watch. A sustained fall below this mark could expose the index to further weakness towards 22,180, the current month's low. On the upside, 22,850 is the immediate resistance, supported by the presence of the 20-day exponential moving average (EMA).
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Bank Nifty Outlook
The Bank Nifty also remained under pressure, forming a sizable bearish candle and extending its corrective decline for the fourth consecutive session.
According to Bajaj Broking Research, a break below 54,000 could intensify selling pressure, while a recovery above immediate resistance would be needed to improve the near-term outlook.
“A follow-through weakness below 54,000 will open further downside towards 53,500 and 53,100 levels in the coming sessions. Index has key short-term support at 53,500-53,000 being the confluence of the trendline support joining previous major lows and key retracement of the previous major up move. On the higher side only a move above 55,150 will signal pullback towards 56,000 levels in the coming sessions,” explained Pabitro Mukherjee.