Nifty rises 0.7% in pre-market; FPIs post Rs 1,165 crore net buy

The Benchmark Nifty index registered a 0.7% rise during pre-market trading, according to reports, continuing its positive momentum into the session. Market analysts indicated that the index is likely to enter a consolidation phase, with gradual upticks anticipated going forward. Key resistance levels for the index have been identified at 22,650 and 22,800, while support is noted at 22,500, establishing the trading range for market participants to monitor throughout the session.

Foreign portfolio investors demonstrated renewed buying interest, recording net purchases of Rs 1,165 crore, the data showed. This inflow contrasts with an ongoing trend of domestic investor outflows, suggesting divergent sentiment between overseas and domestic market participants at current levels.

For traders and investors, the interplay between foreign buying and domestic selling is a key indicator of market sentiment. FPI inflows typically provide support during periods of domestic uncertainty, while their presence can validate strength in rallies. The consolidation phase analysts foresee suggests the market may lack conviction for a sustained directional move, with prices likely trading within defined levels until fresh catalysts emerge. The identified resistance and support zones become critical for mean-reversion trades and breakout strategies, making technical levels essential to watch as the session unfolds.

Source: Markets-Economic Times