GIFT Nifty slips to 25,266.50 as Sensex and Nifty face overbought test
Indian equities are set for a cautious open on Friday, with GIFT Nifty at about 25,266.50, down 34.50 points or 0.12% from the Nifty futures' previous close, against Thursday's Nifty 50 close of 25,299.35. The signal follows three straight sessions of gains that have left both benchmarks deep in overbought territory.
The Sensex added 31.61 points, or 0.04%, to close at 81,911.01, while the Nifty 50 rose 44.30 points, or 0.18%, to 25,299.35. Sachin Gupta, VP of technical research at Choice Equity Broking, said the Sensex formed a Doji-like candle with its daily RSI at about 81.40 against an average of 66.46, indicating strong momentum but also an overbought zone where consolidation or profit-booking cannot be ruled out. Hitesh Tailor, technical research analyst at Choice Broking, put the Nifty's RSI at 79.82 against an average of 64.67, with support at 25,000–25,150 and resistance at 25,400–25,500.
Ponmudi R, chief executive of Enrich Money, said the near-term outlook remains cautious and direction will hinge on crude oil prices, US Treasury yields and foreign portfolio flows. A sustained moderation in oil alongside continued FPI buying could support the rally, he said, while a renewed rise in bond yields or fresh escalation of tensions in the Gulf could weigh on sentiment.
Wall Street closed lower on Thursday as concerns around Nvidia persisted, with the Dow Jones Industrial Average shedding nearly 200 points and the Nasdaq Composite down 0.35%. Asian markets diverged: South Korea's KOSPI rose 2.20% to 5,460.37 in early trade, Japan's Nikkei 225 gained over 2% to 61,853.14 and Taiwan's TAIEX rallied over 3% to 44,341.85.
Back home, Pabitro Mukherjee, deputy vice president of research at Bajaj Broking, said a marginal depreciation in the rupee weighed on sentiment on November 12, though the broader bias stayed positive on sustained foreign inflows and Brent crude below $92 a barrel. Investors are also watching key inflation data.
