Indian Stock Market Poised for Volatile Start Amid Elections

The Indian stock market is expected to open on a cautious note on Friday, reflecting a sharp slump in global markets. Investors are bracing for heightened volatility ahead of the Bihar election results, which are being closely watched for their potential impact on market sentiment.

Early indicators from the GIFT Nifty suggest a weaker start, trading around 25,844, a discount of nearly 110 points from the previous Nifty futures close. Thursday’s trading session saw the market end largely flat, with the Sensex inching up just 12 points to 84,478, while the Nifty 50 closed 3 points higher at 25,879 amid profit booking at elevated levels.

Sensex Outlook

After a recent upward trend, Sensex has seen profit-taking near resistance zones. Analysts point out that the 20-day Simple Moving Average at 84,200 remains a crucial support level. As long as the index stays above this, the short-term trend is expected to remain positive. A break above 85,000 could accelerate gains toward 85,300, while a fall below 84,200 may see the market testing 84,000–83,700.

Nifty 50 in Focus

Nifty 50 displayed indecision on the daily chart, forming a doji-like candle with long shadows, signaling ongoing market volatility. The near-term support lies between 25,750–25,700, while resistance is expected around 26,000. Analysts highlight that a decisive move above 26,000 may trigger a fresh rally toward 26,300. On the downside, a drop below 25,700 could prompt short-term profit booking.

Bank Nifty Performance

The Bank Nifty index maintained a bullish stance, closing at 58,381, with a session high of 58,615. Key support remains at 58,000, and resistance is seen at 58,500–58,600. Sustained buying in leading banks supports the bullish momentum, though a slip below 58,000 could lead to near-term consolidation.

With global market pressure and the uncertainty around Bihar election results, traders are expected to adopt a cautious approach. The broader market remains in a consolidation phase, with potential swings providing both risks and opportunities for investors keeping a close eye on support and resistance levels.