Stock Market Today: Sensex, Nifty Eye Higher Opening After 7-Day Losing Streak

Indian equity benchmarks are poised for a positive start on Thursday, as global cues and buying in heavyweight stocks are expected to lift sentiment. The Sensex and Nifty are likely to open higher after breaking a seven-day losing streak, which had dragged the indices to multi-month lows. Market participants are closely watching the movement of the rupee, crude oil prices, and foreign institutional investor (FII) flows for further direction.

According to the latest data, the BSE Sensex had fallen by 1,200 points during the seven-day decline, while the NSE Nifty had shed over 350 points. The sell-off was driven by concerns over rising interest rates, weak global cues, and profit-booking by investors. However, analysts say that the market has entered oversold territory, and a technical rebound is possible. "The market is due for a bounce after such a sharp fall," said a market expert, adding that valuations have become more reasonable after the recent correction.

On the corporate front, several companies are set to announce their quarterly earnings, which could influence stock-specific movements. Additionally, the government's fiscal deficit data and manufacturing PMI numbers are scheduled to be released later in the day, which could provide further cues. The rupee is trading at 83.50 against the US dollar, down from its recent high, and any further depreciation could weigh on the market.

Global markets are trading mixed, with US futures indicating a flat to positive opening. Asian markets are mostly higher, with Japan's Nikkei and China's Shanghai Composite gaining. However, concerns over the global economic slowdown and central bank tightening persist. Analysts recommend a stock-specific approach and suggest that investors should focus on quality names with strong fundamentals.

"The recent fall has created buying opportunities in select large-cap stocks. Investors should look at companies with good cash flows and low debt," said a senior analyst.

Technically, the Nifty has immediate support at 19,300 and resistance at 19,600. A break above 19,600 could trigger further short covering. The Sensex has support at 65,000 and resistance at 65,800. Traders are advised to keep a strict stop loss and avoid taking excessive leverage.

In the broader market, midcap and smallcap indices are likely to outperform, as they were hit harder during the recent correction. The volatility index (India VIX) has cooled off from its recent highs, indicating reduced market fear. However, any negative surprise in the upcoming economic data or a sudden spike in crude prices could derail the recovery.

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