Amruta Shinde, Technical & Derivative Analyst, Choice Broking
Indian benchmark indices are expected to open on a flat note today, with the GIFT Nifty indicating a marginal uptick of 19 points in the Nifty 50. Market sentiment remains cautiously optimistic; however, persistent volatility and mixed global cues continue to weigh on investor confidence.
The Nifty 50 opened on a positive note in the previous session but slipped below 24,650, closing in the red for the eighth straight day—reflecting sustained selling pressure. From a technical perspective, a sustained move above 24,800 could pave the way for a rally toward 25,000. On the downside, immediate support lies at 24,530 and 24,400, which may serve as potential entry points for long trades.
The Bank Nifty ended indecisively, forming a Doji after a volatile session. A decisive break below the key support of 54,200 could extend the downside toward 54,000 and 53,790 (200-day EMA). However, if these support levels hold, a reversal may provide fresh buying opportunities. On the upside, resistance is seen at 54,800–55,000, with a breakout above this zone likely to trigger momentum toward 55,500.
Foreign Institutional Investors (FIIs) extended their selling streak for the sixth consecutive session on September 29, offloading equities worth over Rs 2,830 crore. On the other hand, Domestic Institutional Investors (DIIs) continued to provide support, buying equities worth Rs 3,845 crore on the same day.
Given the prevailing uncertainty and heightened volatility, traders are advised to maintain a cautious “wait-and-watch” stance, particularly in leveraged positions. Booking partial profits on rallies and deploying tight trailing stop-losses remain prudent. Fresh long positions should only be considered if the Nifty sustains above the 25,000 mark. While the broader outlook remains cautiously bullish, close monitoring of breakout levels and global market developments will be crucial in the sessions ahead.