Stock Market Today: Sensex, Nifty May Stay Cautious Amid FII Selling
- Sensex and Nifty likely to trade with a cautious bias on July 23.
- FIIs have been persistent sellers in domestic equities recently.
- Markets may remain range-bound with negative bias in early trade.
Indian stock markets are expected to start Thursday's session on a cautious note, with the BSE Sensex and NSE Nifty likely to remain under pressure as foreign institutional investors (FIIs) continue their selling spree.
Analysts say the lack of fresh positive triggers and persistent FII outflows are weighing on sentiment. Domestic institutional investors (DIIs) have been providing some support, but overall momentum remains subdued.
FII Selling Spree Continues
Foreign portfolio investors have been net sellers in Indian equities for several sessions, adding to the uncertainty. Data shows FIIs have pulled out significant capital from the cash market over the past few weeks.
This selling pressure is offsetting buying by domestic institutions and retail investors. The trend has kept the benchmark indices in a narrow range, unable to break out decisively on the upside.
Global Cues Mixed
Overnight cues from global markets offered little direction. Asian peers were trading with a mixed bias in early deals, while US markets ended flat to negative overnight.
Investors are also monitoring the movement of the rupee against the dollar and crude oil prices, both of which can influence market direction. A weaker rupee typically hurts FII sentiment.
Technical Outlook for Nifty
From a technical perspective, the Nifty 50 index has been hovering near a key support zone. If the index manages to hold above the 24,500 level, a mild recovery cannot be ruled out.
However, a decisive break below that level could trigger further selling. Traders are advised to remain cautious and avoid aggressive positions until a clear trend emerges.
What to Watch
Market participants will keep a close eye on FII activity and any fresh triggers from the primary market or corporate earnings. The weekly F&O expiry could also add to volatility later in the day.
Analysts expect the cautious tone to persist until there is clarity on the FII selling trend or fresh positive domestic catalysts emerge.