The Indian stock market is poised for a cautious start on Friday, attempting to find its footing after a severe battering in the previous session. Early indications from the Gift Nifty futures, trading around 26,002.5—up about 35 points or 0.13%—suggest a marginally positive opening. However, this comes on the back of a deep and broad-based sell-off that rattled investors on Thursday.
A Day of Heavy Losses: Sensex & Nifty Tumble
On Thursday, benchmark indices Sensex and Nifty plunged sharply, mirroring weak cues from global markets. The selling pressure was intense and widespread. The 30-share Sensex nosedived by 780 points, or 0.92%, to close at 84,180.96. This marked the index's steepest single-day percentage decline in over four months. Data from Capitalmarket confirms this was the biggest fall since August 26, 2025, when the Sensex had dropped 1.04%.
The Nifty 50 was not spared either, breaking below the crucial 25,900 level to settle with a loss of around 260 points. The sell-off was driven by a confluence of negative global trends and profit-booking at higher levels.
Technical Outlook: Nifty and Bank Nifty Analysis
Chandan Taparia, Head of Derivatives and Technicals at MOFSL Wealth Management, provided a detailed technical perspective. He noted that the Nifty opened negative and cascaded lower throughout the day, breaking all immediate support levels to touch a low near 25,860.
"It formed a bearish candle on the daily frame and is forming lower highs – lower lows from the last three sessions," Taparia observed. He stated that as long as the index holds below 25,950 zones, weakness could extend towards 25,700 and then 25,600 levels. Immediate resistance is now placed lower at 26,000 and 26,150.
On the options front, maximum Call open interest is at the 26,100 strike, followed by 26,200. Maximum Put OI is concentrated at 25,700, then 25,500. The data suggests a broader trading range between 25,400 and 26,400.
Bank Nifty Remains Under Pressure
The Bank Nifty index also opened weak. Although it saw a brief recovery towards 60,100 in the initial hour, it failed to sustain at higher levels and drifted down to 59,550. Taparia highlighted that the index is also forming a pattern of lower highs and lower lows. He believes that below 59,750, further weakness towards 59,500 and 59,250 is possible. Key hurdles on the upside are now at 60,000 and 60,250.
Stocks to Buy or Sell: Expert Recommendations
Chandan Taparia has recommended trading strategies for three stocks for Friday's session:
Indus Towers | Buy | Target: ₹445 | Stop Loss: ₹420
The stock is in an overall uptrend, finding support near its 20-day exponential moving average (DEMA). The rising ADX line confirms the strength of the current trend.
Eternal | Buy | Target: ₹300 | Stop Loss: ₹275
This stock is hovering around its 200 DEMA support and has formed a base. A bullish reversal is indicated as the Stochastic oscillator has moved out of its oversold territory.
National Aluminium Co. | Sell | Target: ₹315 | Stop Loss: ₹342
A bearish 'Evening Star' candlestick pattern has formed on the chart, suggesting a potential reversal. This view is reinforced by a bearish crossover on the RSI indicator.
Disclaimer: This analysis is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are strongly advised to consult with certified experts before making any investment decisions.
