Indian equity markets are set for a positive start after two consecutive days of decline, with GIFT Nifty September 2026 futures up 38 points indicating improved sentiment. The Nifty 50 index closed at 24,090.85, down 116.90 points or 0.48%, while the Sensex declined 539.35 points or 0.70% to 76,933.59 in the previous session. Despite the recent weakness, technical analysis reveals the 24,200 level acts as immediate support for the Nifty, with the index having parted all gains made on Tuesday as profit booking emerged at higher levels. The 50 EMA level of 24,176 remains a crucial near-term support with limited upside till 24,300, while the 24,100-24,200 zone remains immediate support, followed by 24,000 and 23,900 levels as per SAMCO Securities.
Brent crude oil prices rose 2.1% to $89.70 per barrel on Thursday after media reports indicated that the Trump administration was not interested in returning to the terms of a June memorandum of understanding with Iran, raising doubts over efforts to ease supply disruptions around the Strait of Hormuz. US West Texas Intermediate crude dropped 0.7% to $81.67 per barrel, marking its fifth straight session of losses. Oil prices have eased on expectations that talks between Iran and Qatar could help reopen the Strait of Hormuz and reduce disruptions to energy supplies stemming from the Middle East conflict. The geopolitical backdrop remains fluid, with recent developments surrounding discussions involving Iran and Qatar over the Strait of Hormuz raising cautious optimism that supply-disruption risks could ease.
Domestic institutional investors (DIIs) were net buyers to the tune of ₹4,977.17 crore in the Indian equity market on August 27, 2026, providing crucial support during the recent market decline. Foreign portfolio investors (FPIs) sold shares worth ₹298.26 crore, while FPIs bought shares worth ₹17,996.51 crore in August so far, following net cash purchases of ₹6,731.97 crore in July 2026. This increased volatility comes as foreign portfolio investors sold off shares, whereas domestic entities made strategic purchases. The Indian Rupee closed marginally lower compared to the US dollar, adding to the domestic headwinds facing the equity markets. Foreign institutional investors were net sellers for a second consecutive session, while domestic institutional investors (DIIs) recorded much stronger purchases, investing ₹6,425 crore in equities.
Technical analysis reveals that the 24,200 level acts as immediate support for the Nifty, with the index parded all gains made on Tuesday as profit booking emerged at higher levels. On the daily charts, the index negated the bullish engulfing pattern created on Tuesday, reversing the momentum to mildly bearish. The 50 EMA level of 24,176 remains a crucial near-term support with limited upside till 24,300. The 24,100-24,200 zone remains immediate support, followed by 24,000 and 23,900 levels as per SAMCO Securities. However, the index has yet to sustain a move above the 24,350-24,375 zone, which includes the 200-day EMA at 24,374 and remains the key resistance level. A decisive breakout above this range could trigger short covering and push the index towards 24,533, followed by 24,784, while failure to break above could keep the index in broader consolidation.
Bank Nifty also remained within its broader consolidation phase, forming a small bullish candle with an upper shadow and signalling profit booking at higher levels around the 58,000 mark. As per Bajaj Broking Research, the broader eight-week consolidation range remains intact between 56,500 and 58,700, with the index expected to continue moving within this range unless a decisive breakout or breakdown provides stronger directional signal. The 58,000 level is likely to remain a key resistance zone for Bank Nifty, with a sustained move above this level potentially opening the way towards 58,500-58,700 levels, while failure to cross it could keep the index confined between 57,000 and 58,000. On the smaller time frame, Bajaj Broking Research noted that Bank Nifty has been consolidating over the last 16 sessions within a relatively narrow range, having retraced only around 50% of its previous seven-session up move from 56,023 to 58,248, indicating a higher base formation and relatively stable underlying structure.
