Post by : Badri Ariffin

The Indian stock market is likely to begin cautiously on Friday, mirroring a notable drop in global markets. Investors are preparing for increased volatility as Bihar's election results draw near, which are expected to influence market sentiments significantly.

Initial signals from the GIFT Nifty indicate a subdued opening, trading at approximately 25,844, reflecting a nearly 110-point discount from the last Nifty futures close. In Thursday's session, the market remained mostly flat, with the Sensex gaining only 12 points to reach 84,478, while the Nifty 50 edged up by 3 points to close at 25,879 amid profit-taking at higher levels.

Sensex Analysis

Following a recent upward trajectory, the Sensex has encountered profit-taking near key resistance points. Experts note that the 20-day Simple Moving Average at 84,200 serves as an essential support level. As long as the index remains above this figure, a positive short-term trend is anticipated. A breakthrough above 85,000 could catalyze upward movement toward 85,300, whereas a decline below 84,200 might see the index test levels of 84,000–83,700.

Nifty 50 Insights

The Nifty 50 has shown signs of indecision on the daily chart, forming a doji-like candle with pronounced shadows, indicating ongoing market fluctuations. Immediate support is predicted in the range of 25,750–25,700, while resistance is anticipated around 26,000. Analysts suggest that any decisive movement past 26,000 could spark a new rally toward 26,300, whereas a drop below 25,700 may lead to short-term profit-taking.

Bank Nifty Trends

The Bank Nifty has retained a bullish outlook, concluding the session at 58,381, with a peak of 58,615. Key support is identified at 58,000, with resistance expected between 58,500 and 58,600. Ongoing buying from major banks bolsters the bullish momentum, but a fall beneath 58,000 might initiate short-term consolidation.

As global market pressures loom and uncertainty surrounds the Bihar election results, traders are likely to proceed cautiously. The broader market continues its consolidation phase, with potential fluctuations presenting both challenges and opportunities for investors monitoring support and resistance levels closely.

#Global News