Nifty, Sensex Today: Dalal Street signals mixed start as bulls try to build on Nifty rebound

Nifty, Sensex Today: Indian equity benchmarks Sensex and Nifty 50 are likely to open flat to mildly lower on Friday, as indicated by early GIFT Nifty cues, despite positive global markets.

GIFT Nifty

At around 8:30 AM, GIFT Nifty was trading at 25,354, down 42 points, or 0.17 per cent, suggesting a cautious start for domestic equities.

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Asian markets were trading higher, while US stocks gained overnight after geopolitical tensions eased and US President Donald Trump reversed tariff threats linked to Greenland, improving global risk sentiment.

On Thursday, the domestic stock market snapped a three-session losing streak on signs of easing global tensions. The Sensex rose 397.74 points, or 0.49 per cent, to close at 82,307.37. The Nifty 50 gained 132.40 points, or 0.53 per cent, to settle at 25,289.90.

Nifty breaks short-term downtrend

The Nifty ended Thursday’s session close to its previous day’s high of 25,300, indicating improving momentum. The index also broke its three-day lower high-lower low formation, suggesting a pause in the recent weakness.

On the upside, analysts see resistance near the 100-day moving average levels of 25,600 and 25,750 during any recovery.

Is Nifty oversold?

Zee Business Managing Editor Anil Singhvi said the Nifty had entered an oversold zone earlier this week. The Nifty’s Relative Strength Index (RSI) slipped below 30 to around 28 on January 21. It later recovered to nearly 35.

Since 2022, the Nifty has entered the oversold zone six times. In five instances, the fall halted and a strong recovery followed. Past recoveries ranged between 6.5 per cent and 18 per cent. Only once, in October 2024, did the market continue to fall despite an RSI of 28.

“This time as well, the Nifty showed recovery signals immediately after turning oversold. The key question is whether the recovery will sustain,” Singhvi said.

Bank Nifty at make-or-break zone

Bank Nifty also showed signs of stability after breaking its three-day downtrend. The index closed below its 50-day moving average of 59,275 for two consecutive sessions, a first in nearly three months.

However, strong support remains in the 58,700–58,800 range. Since November 14, Bank Nifty has tested this zone eight times and has not closed below it. Each time, the index recovered between 0.5 per cent and 2.8 per cent within one to five days.

On Thursday, Bank Nifty bounced nearly 775 points intraday from the 58,800 level and closed about 400 points higher, marking the ninth instance of support holding.

FII-DII data remains mixed

Domestic institutional investors continued their buying streak for the 102nd straight session, purchasing shares worth Rs 4,222 crore.

Foreign institutional investors remained sellers for the 13th consecutive day. FIIs sold shares worth Rs 2,549 crore in the cash market. Across cash, index futures and stock futures, FIIs recorded a net outflow of Rs 2,056 crore.

However, FIIs increased their long positions in index futures to 12.51 per cent from 11.33 per cent, indicating selective optimism.

Global cues supportive

US markets rose for the second straight session, with the Dow Jones gaining nearly 900 points over two days. The rupee strengthened by 6 paise to close at 91.63 against the dollar.

The dollar index hovered near 98, close to a two-week low. US bond yields declined for the second day and were around 4.24 per cent.

Gold and silver hit fresh lifetime highs. Gold surged past $4,870, while silver traded near $99. Over the past four sessions, gold has risen by Rs 13,824 and silver by Rs 39,527, reflecting strong safe-haven demand.