Indian equity markets opened higher on Monday, October 12, supported by easing crude oil prices and fresh measures from the Reserve Bank of India to stabilise the rupee. By around 9:30 AM, the Sensex was near 72,508, while the Nifty 50 traded around 22,557. However, weakness in banking and IT stocks limited the early gains, and the benchmark indices fell from its day high and turned negative. Sensex was trading near the 71,900 level where as Nifty was near 22,350 level.

1. Crude Oil Prices Ease

Brent crude fell around 1.5% to nearly $103 per barrel amid hopes of reduced pressure on energy supplies following a reported Russia-Ukraine agreement to halt attacks on energy infrastructure. Lower oil prices are positive for India because they can reduce the import bill, ease inflationary pressure and support the rupee. However, crude remains elevated, keeping this risk on investors’ radar.

2. RBI Steps In to Support the Rupee

The RBI introduced measures to reduce pressure on the rupee, including directing oil companies’ dollar purchases away from the spot market and tightening rules around currency hedging. The rupee strengthened by around 1% at the open. A more stable currency could ease concerns about imported inflation and make Indian equities more attractive to foreign investors.

3. Positive US Market Cues

US stocks closed higher on Friday, with the Dow Jones gaining 0.83%, the S&P 500 rising 0.59% and the Nasdaq advancing 0.64%. These gains offered some support to domestic sentiment. However, Asian markets were mixed on Monday, with South Korean shares under pressure, suggesting that global cues are not uniformly positive.

4. Bargain Buying After a Prolonged Sell-Off

The Nifty and Sensex are attempting to extend Friday’s recovery after a prolonged period of losses. The Sensex gained 879 points and the Nifty rose 1.30% on Friday. Buying in mid-cap and small-cap shares also supported Monday’s early trade. Still, the rebound needs sustained participation to confirm that selling pressure is easing.

5. FII Outflows Remain a Major Concern

Foreign portfolio investors have withdrawn more than Rs 44,000 crore from Indian equities in October, adding to substantial outflows during 2026. High crude prices, a strong US dollar and elevated US bond yields have weighed on sentiment. Continued foreign selling could cap any recovery, even as domestic investors provide support.

Key Technical Analysis

Sensex Technical Outlook

The Sensex is attempting to stabilise around the 72,500 level after last week’s steep decline. Immediate resistance lies around 72,700–73,000, while support is likely near 72,000, followed by 71,700. A sustained move above 73,000 could improve short-term sentiment. However, failure to hold above 72,000 may bring renewed selling pressure.

Nifty 50 Technical Outlook

The Nifty 50 is trading near 22,550, with 22,500 acting as an important immediate support zone. Below this, 22,300 and 22,180 are key levels to watch. On the upside, the index needs to reclaim 22,800 before attempting to move towards 23,000. The broader trend remains weak until the index sustains a recovery above these resistance levels.

Bank Nifty Technical Outlook

Bank Nifty was trading near 55,119 in early trade, slightly lower despite the broader market’s positive opening. Support is seen around 54,800–54,600, followed by 54,300. On the upside, 55,400–55,600 is the immediate resistance zone. A sustained move above 55,500 could strengthen the recovery, while a break below support may extend weakness in banking shares.

Today’s Key Takeaway

The market is drawing support from lower crude prices, RBI measures to stabilise the rupee and bargain buying. However, persistent FII outflows and mixed Asian cues remain concerns. Investors should watch whether the Nifty can sustain levels above 22,500 and move towards 22,800. The current bounce is encouraging, but a lasting recovery requires continued buying and improvement in global sentiment.

The future of investing is here!
Tradz by EquityPandit leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app todayand 10x your trading & investing journey!