Post by : Rameen Ariff

India’s stock market may start weaker on Friday as investors wait for U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium. His words are closely followed across the world because they give hints about future U.S. interest rates, which affect global markets including India.

Market Trend So Far

On Thursday, Indian markets continued their winning run for the sixth straight day. The Sensex closed at 82,000.71 points, up by 142.87 points or 0.17%. The Nifty 50 ended at 25,083.75, up by 33.20 points or 0.13%.

The Gift Nifty, which gives an early sign of how markets may open, was trading around 25,084 in the morning. This was nearly 38 points lower than the Nifty futures’ previous close, showing a weak start is likely.

Sensex Outlook

Experts say the larger market trend remains upward, but traders need to be careful.

• On the downside, the support levels are at 81,700 and 81,500.

• On the upside, resistance levels are near 82,300 and 82,500.

If the Sensex falls below 81,500, many traders may choose to exit their long positions, which could bring more selling pressure.

Nifty 50 Outlook

The Nifty formed a small red candle on the daily chart, showing consolidation after a strong run. Analysts say the market is still in an uptrend, but there may be short-term weakness.

• Immediate support: 25,000

• Resistance: 25,250 – 25,350

• If Nifty closes above 25,300, bullish momentum may continue.

Some analysts also point out that momentum indicators show signs of slowing down, which could mean a short-term pause before the market moves higher again.

Bank Nifty Outlook

The Bank Nifty index ended at 55,755.45, up 56.95 points, but formed a red candle on the chart, suggesting selling pressure at higher levels.

• Support: 55,300 – 55,500

• Resistance: 56,100 – 56,200

• A strong breakout above 56,100 could push the index towards 56,500 and even 56,900 in the short term.

Analysts say Bank Nifty is in a consolidation phase, meaning the index may trade in a range before making a big move either upward or downward.

Key Factors to Watch

1. Jerome Powell’s speech: Any signal of higher U.S. interest rates could make global investors cautious, leading to selling pressure in Indian markets.

2. Global cues: Geopolitical events, foreign fund inflows, and U.S. bond yields will also guide investor sentiment.

3. Stock-specific action: Even if the market consolidates, some stocks may continue to perform well based on company news and sector trends.

The Indian market has shown strong resilience in recent weeks, touching new highs. But short-term corrections are normal and healthy for the market. Traders should focus on support and resistance levels, while long-term investors may continue to benefit from the overall upward trend in the economy.

Friday’s session will be important, not just for India but for global markets, as the world waits for the U.S. Fed’s outlook. For now, caution and patience remain the best strategies.