The foreign institutional investors (FIIs) remained net sellers for the fifth straight week, offloading Rs 7,620 crore, according to exchange data.

On the other hand, domestic institutional investors (DIIs) extended their buying streak with net purchases of Rs 11,232 crore, which helped the index recover from its mid-week lows, said analysts.

This month so far, FIIs have sold a net Rs 7,041 crore against DII net buying of Rs 36,219 crore, with the Nifty down 3.05 per cent from its August-end close of 24,080.40.

Going ahead, sustained FII selling and global headwinds are likely to keep markets volatile, though steady domestic institutional buying should continue to limit the downside, said market participants.

Market participants will closely track Brent crude prices, US-Iran geopolitical developments, and the upcoming US and domestic PMI data for cues on near-term direction.

Markets extended their recovery for the second straight session on Friday, supported by easing crude prices and bargain buying after the recent correction.

The benchmarks opened higher and remained range-bound through the session, with the Nifty holding above the 23,300-mark for most of the day. The Nifty settled at 23,346.40, up 0.33 per cent, while the Sensex closed at 74,294.96.

The broader market continued to outperform, with the Nifty Midcap and Smallcap indices gaining around 1.24 per cent and 1.74 per cent, respectively.

Global cues turned somewhat supportive as Brent crude eased to around $103.5–104 per barrel, extending its recent decline on expectations that alternative supply routes could help mitigate disruptions.

Technically, the Nifty’s ability to sustain above the 23,200–23,300 zone provides some near-term stability after the recent decline.

However, the broader trend remains cautious, with 23,400–23,600 emerging as the key resistance zone.

The focus should remain on selective opportunities, with a cautious and hedged approach preferred amid elevated crude prices, persistent FII selling and global rate uncertainty, said analysts.