Markets open lower as Sensex slips 200 points and Nifty stays below 26,100

The stock markets opened lower on Friday morning, with both key benchmarks trading in the red by around 10:26 IST. The Sensex slipped more than 200 points to trade near 85,195, while the Nifty 50 fell below the 26,100 mark. The decline came as investors turned cautious in early trade, with FII selling pressure seen across select heavyweights despite recent record highs.

According to analysts, Indian equity markets opened on a cautious note as year-end positioning and profit booking near record highs continue to cap upside momentum. Mixed signals from Asian markets, coupled with light volumes, are keeping markets largely range-bound in early trade. Despite the mild negative opening bias, the broader market structure remains constructive, with key support levels holding firm. In the absence of fresh global or domestic triggers, markets are likely to stay in a consolidation phase, while the broader medium-term outlook continues to remain positive.

Ponmudi R, CEO of Enrich Money said, "Nifty 50 is trading around the 26,090 zone after failing to sustain above the 26,235 resistance band. The index continues to trade above its 20-day EMA near 26,000, indicating that the short-term trend remains intact despite ongoing consolidation. The current price action reflects a pause within the broader uptrend rather than any structural breakdown. As long as Nifty holds above the 26,000 mark, declines are likely to attract buying interest, while a sustained breakout above 26,300 is required to unlock fresh upside toward 26,500 and higher."

Option data reinforces this range-bound view. During today’s session, call writers added around 5.7 crore contracts, while put writers entered with approximately 3.08 crore contracts, indicating stronger supply at higher levels. Overall cumulative open interest stands at 21.40 crore on the call side versus 17.42 crore on the put side. Strong put OI support is visible at 26,000, while heavy call writing in the 26,100–26,200 zone continues to cap upside, keeping the index locked within a defined range.

Bank Nifty is trading near 59,100 and continues to consolidate after a sharp rally over recent weeks. The index is holding above its rising 20-day EMA and key trendline support near 59,000, reflecting healthy consolidation within an ongoing uptrend. While immediate upside faces resistance in the 59,400–60,000 zone, the overall structure remains positive unless the index decisively slips below 58,800. Banking stocks are expected to remain the key driver for broader market direction.

Sensex is trading around 85,245, moving within a rising channel and maintaining a higher-low structure. "Near-term selling pressure is likely to find support around 85,000, while upside momentum has slowed near 85,500. A decisive breakout and close above this level could open the path toward the 86,000 zone. Despite near-term consolidation, the index continues to show resilience on declines, suggesting underlying strength. Breakout above channel resistance would confirm trend continuation, while dips toward support zones are likely to be accumulated," said Ponmudi R.