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Below the Quote on Pre-Market Comment by Mandar Bhojane, Research Analyst, Choice Broking

The benchmark indices, Sensex and Nifty, are likely to open on a cautious note today, with GIFT Nifty signaling a potential 55-point dip for the broader market. Asian markets were trading lower on Wednesday, influenced by losses on Wall Street, where major indices closed down as investors booked profits from the recent postelection rally. U.S. inflation data, anticipated later this week, also contributed to a cautious sentiment.

Nifty Technical Overview

On the technical front, a Bearish Engulfing pattern formed on the daily chart, highlighting the increased influence of bearish sentiment. The immediate support level is situated at 23,650; if this level is breached, the index may slip further to 23,400. On the upside, resistance remains robust, with selling pressure expected around the 24,200 mark.

Bank Nifty Technical Overview

Bank Nifty is trading within a sideways range, fluctuating between 51,000 and 52,500. While resistance levels face selling pressure, there is buying interest near support levels, keeping it range-bound. A breakout above 52,400 could trigger a move towards the 52,800-53,000 range. Immediate support for Bank Nifty lies at 50,500, with a secondary support at 50,000.

Institutional Activity 

On November 12, foreign institutional investors (FIIs) extended their selling spree, offloading equities worth over Rs.3,000 crore. In contrast, domestic institutional investors (DIIs) were net buyers, purchasing equities worth Rs.1,854 crore, providing some support to the market.

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