Indian equity markets opened on a weak note on Friday, mirroring cautious sentiment in global markets. The BSE Sensex dropped by 242.29 points, or 0.32%, to 76,105.77, while the Nifty50 slipped 44.60 points, or 0.19%, to 23,146 at the opening bell.
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the market has recently moved above the 50-day Simple Moving Average (SMA) and surpassed the key resistance zone at 23,000/75,700, which is considered a positive technical development. Additionally, the formation of a bullish candle on the daily charts suggests that the uptrend could continue.
“While the overall market sentiment remains bullish, day traders are advised to adopt a strategy of buying on dips and selling on rallies. In the short term, support levels are identified at 23,100/76,000 and 23,000/75,700, while resistance is expected at 23,300/76,500 and 23,400/76,800. However, a drop below 23,000/75,700 could turn sentiment negative, prompting traders to reconsider their long positions,” Chouhan added.
Global Market Trends
Asian markets showed mixed movements, with Japan’s Topix index reaching an eight-month high, driven by gains in the financial sector. The index touched 2,817.58, its highest level since July 24, before settling at 2,814.15, reflecting a 0.65% increase. This marks the seventh consecutive session of gains, fueled by stronger-than-expected inflation data, which has increased expectations of potential interest rate hikes by the Bank of Japan.
In South Korea, the benchmark KOSPI index witnessed a marginal dip, falling 3.03 points, or 0.11%, to 2,634.07. Losses in battery and steel stocks offset gains in semiconductor shares. Despite the decline, the KOSPI remains on track for its third consecutive week of positive performance.
U.S. Market Influence
On Wall Street, U.S. stocks closed slightly lower on Thursday after a volatile session where investors weighed economic data and the Federal Reserve’s policy stance. Concerns over trade tariffs also contributed to the market’s cautious tone. Economic indicators pointed to signs of slowing growth and weaker consumer sentiment, further exacerbated by reciprocal trade tariffs imposed by the Trump administration.
Overall, Indian markets remain influenced by both domestic technical indicators and global economic developments. Investors will closely watch upcoming economic data and corporate earnings reports to gauge market direction in the coming weeks.
