The Indian equity market continued its steady momentum on Thursday, with the NSE Nifty 50 closing 32 points or 0.13% higher at 25,005, while the BSE Sensex advanced 124 points or 0.15% to settle at 81,548. The market extended its winning streak even as trading remained within a tight range.
Sudeep Shah, Vice-President & Head of Technical and Derivatives Research at SBI Securities, noted that Nifty traded within a narrow 97-point range, indicating a lack of strong directional momentum. “Despite the subdued intraday movement, the index managed to close the session with a modest gain, settling just above the psychologically significant 25,000 mark,” Shah said.
Key Levels to Watch: Nifty and Sensex
According to Shah, the immediate hurdle for the Nifty 50 lies in the 25,100-25,130 range. “Any sustainable move above the 25,130 level will lead to a sharp upside rally up to 25,250. On the downside, the 24,980-24,950 zone will act as crucial support for the index,” he added.
The Sensex, which ended higher for the fourth consecutive session, also formed a bullish candle with a minor upper shadow. The index is comfortably trading above its short- and long-term moving averages. “Going ahead, the zone of 81,100-81,000 will act as an immediate support for the index. On the upside, the 82,100-82,200 range will act as a crucial hurdle,” Shah said.
Bank Nifty Shows Strength
Bank Nifty surged above its 20-day exponential moving average (EMA) and ended Thursday at 54,670, up 0.24%. The index formed a bullish candle on the daily chart. Shah highlighted that the 100-day EMA zone of 54,800-54,900 will act as immediate resistance. “A sustainable move above the 54,900 level will lead to a further upside rally up to 55,400. On the downside, the zone of 54,400-54,300 will act as a crucial support,” he explained.
Sectoral Outlook
Shah expects certain sectors to continue outperforming in the short term. “Technically, Nifty Metal, PSU Bank, CPSE, PSE, Auto, Healthcare, Pharma, and Consumer Durable are likely to continue their outperformance,” he said. These segments have shown resilience amid global uncertainties and are likely to attract investor attention.
FII and DII Activity
Foreign institutional investors (FIIs) were net sellers in the cash segment on Thursday, offloading shares worth ₹3,472.37 crore. In contrast, domestic institutional investors (DIIs) emerged as net buyers, purchasing equities worth ₹4,045.54 crore.
On the derivatives front, FIIs’ long-short ratio for index futures stood at 10.78, with net buying of 3,340 index futures contracts, signaling positive sentiment in the futures market.
Global Cues: U.S. Markets Rally to Record Highs
Global sentiment remained buoyant as U.S. markets rallied sharply on Thursday. The Dow, S&P 500, and Nasdaq all closed at record highs after investors reacted positively to key economic data.
Shah explained: “The surge came after investors welcomed Labour Department reports on consumer inflation and jobless claims. While the CPI for August came in slightly above expectations, it wasn’t enough to shift Fed rate expectations. Meanwhile, a drop in weekly jobless claims signaled continued labor market strength, supporting optimism about a soft landing for the U.S. economy.”
The S&P 500 is trading at all-time highs, with technical indicators suggesting strong bullish momentum. Shah expects the index to test 6,650, followed by 6,730 in the short term, with 6,530-6,510 acting as crucial support.
Commodities and Currency
Brent crude oil fell nearly 2% on Thursday. Shah highlighted that the 100-day EMA zone of $67.80-68 will act as an important resistance, while $64.80-64.60 remains a crucial support zone.
Meanwhile, the U.S. Dollar Index (#DXY) has been consolidating in a narrow 98.83-97.25 range over the past 27 trading sessions. “Going forward, the 98-98.20 zone will act as immediate resistance, while the 97-96.80 range will remain a crucial support area,” Shah added.
Stock Market Today: Outlook for Friday, September 12
With Nifty holding above the 25,000 mark, Sensex in bullish territory, and Bank Nifty showing resilience, analysts expect Indian equities to open on a cautious yet optimistic note on Friday. Key support and resistance zones will determine whether markets extend their rally or consolidate further.
Sectoral leadership from metals, auto, healthcare, and PSU banks is likely to guide the day’s momentum, while global cues from Wall Street and commodity markets will remain influential.