The Indian stock market opened on a cautious note with the Nifty 50 declining 117.55 points or 0.50% to 23,517.55 at 09:30 IST, marking a fourth consecutive week of decline and breaching the crucial 24,000 support level. According to Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, the market may witness a flat-to-negative start due to elevated crude oil prices and escalating tensions in the Middle East. These geopolitical risks continue to overshadow otherwise supportive regional cues, keeping investors reluctant to build aggressive positions. Analysts caution that a sustained break below 23,600 could open the door to 23,478 levels, while a decisive move above 23,759 is needed to confirm a bullish reversal. The S&P BSE Sensex declined 535.49 points or 0.70% to 75,042.88, with the BSE 150 MidCap Index falling 0.22% and BSE 250 SmallCap Index shedding 0.11%. Market breadth remained negative with 1,391 shares rising and 1,654 shares falling on the BSE, while 207 shares remained unchanged.
The Nifty 50 index has experienced a fourth straight week of decline, closing with some profit booking near the 23,900 zone and finding resistance near the 24,000 level. As reported by Prabhudas Lilladher, the index's important support level of 23,800 is under threat, with the index hovering just below the 100-period MA of 24,000. The weakness is also visible from the moving average structure, as the 20-DMA has crossed below the 50-DMA, indicating that downside momentum is strengthening and the short-term trend remains under pressure. The 14-period daily RSI has declined towards the 30 mark, reaching its lowest level in more than five months, nearing the oversold zone which may provide some support for a technical bounce in the near term. However, the MACD histogram continues to expand on the negative side, highlighting that bearish momentum remains intact, suggesting that while oversold conditions may lead to a short-term pullback, the broader trend continues to favour caution.
The Bank Nifty index continues to remain stagnant near the important 200-period MA at 57,500 zone, with major support positioned near the 100-period MA at 56,500 level. According to Parekh's analysis, the upside remains capped by the 58,000 zone, which continues to be a tough resistance hurdle that desperately needs to be conquered to trigger a breakout and expect a fresh upward move. However, the Bank Nifty indicates upward trends, encouraging investors to buy on dips around 56,400 level. Technical analysts suggest that the Bank Nifty's upward trends support buying on dips around 56,400, presenting attractive opportunities for investors. The immediate crucial support is placed in the 23,800-23,750 zone, with a break below this range potentially opening the door for a decline towards 23,606, the July low, in the short term.
Foreign Portfolio Investors (FPIs) sold shares worth ₹13,918.41 crore in September so far through September 8, 2026, following net cash purchases of ₹17,366 crore in August 2026 and net buyers of ₹6,731.97 crore in July 2026. This reversal in FPI sentiment reflects growing caution among international investors amid escalating geopolitical tensions. The yield on India's 10-year benchmark federal paper rose 0.14% to 6.954 compared with the previous session close of 6.944. In the foreign exchange market, the rupee edged lower against the dollar, hovering at 94.9225 compared with its close of 94.7450 during the previous trading session. Global markets showed mixed performance with Brent crude for November 2026 settlement jumping $1.42 or 1.45% to $99.34 a barrel after attacks on Saudi energy infrastructure by Iran-backed Houthi militants and further US-Iran military escalation. The US Dollar Index (DXY) was down 0.08% to 98.78, while the US 10-year bond yield shed 0.10% to 4.799.
Despite the cautious market outlook, Vaishali Parekh has recommended three stocks to buy today: TD Power Systems at ₹730 with target of ₹760 and stop loss at ₹720, Vikran Engineering at ₹59 with target of ₹63 and stop loss at ₹57, and Greenply Industries at ₹303 with target of ₹320 and stop loss at ₹294. Among the stocks to watch is TD Power Systems, which witnessed a strong rally of nearly 72% from its July low to the August high and is now approaching a breakout from a flag pattern. The stock is trading above its key short-, medium- and long-term moving averages, with the 14-period RSI having entered bullish territory, supporting the possibility of further upside. A sustained move above the ₹779-780 level would be positive for the stock, with potential targets of ₹840-865 levels. Additionally, Hindustan Oil Exploration Company and Engineers India present attractive opportunities for investors looking to capitalize on the current market conditions.
