Stock market today: Gift Nifty up 18 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices are likely to open on a muted note on Friday ahead of the weekend amid muted earnings from the India Inc. However, US stocks settled with gains on Thursday. Developments around India and the US trade deal shall guide the sentiments in the near-term, along with the Q1 earnings.

Nifty futures on the NSE International Exchange traded 17.90 points, or 0.07 per cent, down at 25,192.50, hinting at a muted start for the domestic market on Friday. Asian stocks were mixed despite gains at Wall Street. Nikkei and KOSPI shed up to 0.25 per cent each, while Shanghai and Hang Seng rose up to a per cent.

Vikram Kasat, Head of Advisory at PL Capital said that with key Q1 earnings lined up, markets may consolidate near-term. “Cautiously optimistic, citing rural demand recovery, sector-specific tailwinds in healthcare and infrastructure, and progress in India–US trade dialogue,” he said.

Wall Street stocks ended higher on Thursday. The Nasdaq Composite gained 153.78 points, or 0.74 per cent, to 20,884.27, and the S&P 500 increased 33.66 points, or 0.54 per cent, to 6,297.36. The Dow Jones Industrial Average also ended up, rising 229.71 points, or 0.52 per cent, to 44,484.49.

In the forex market, the US dollar was on the back foot again on Friday, having bounced 0.3 per cent overnight against major peers on the strong economic data. The dollar index held steady at 98.456. Treasury yields were slightly lower in Asia, while 10-year US Treasury yields slipped 2 basis points to 4.445 per cent.

Oil prices were mostly steady on Friday, after gaining $1 overnight following a fourth day of drone strikes on Iraqi Kurdistan oil fields. US crude inched up 0.2 per cent to $67.66 per barrel and Brent also rose 0.2 per cent to $69.68 a barrel. Spot gold prices were steady at $3,337 an ounce but were set for a 0.5 per cent weekly loss.

Ajit Mishra, SVP of Research at Religare Broking said that the resilience in the broader market further adds to this positive undertone. “We recommend aligning positions accordingly, with a focus on stock selection and risk management, as the current market tone is likely to persist,” he notes.

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 3,694.31 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 2,820.77 crore on a net-net basis.
 

Nifty & Sensex outlook

Nifty failed to sustain 20 DEMA resistance, currently placed at 25232. Nifty is still passing through a choppy trend where immediate support is seen at 25000, below which long bets should be called off. On the higher side, 25250 could act as short-term resistance, said Nandish Shah – Deputy Vice President, HDFC Securities.

As long as the market is trading below 25,200/82,500, the weak sentiment is likely to continue. On the downside, the 50-day SMA at 25,000/82,000 would be the immediate support level. Below 25,000/82,000, the chances of hitting 24,900-24,850/81,600-81,500 would increase, said Shrikant Chouhan, Head Equity Research, Kotak Securities.
 

Nifty Bank outlook

Nifty Bank formed a bearish engulfing candle on the daily chart, indicating weakness. The short-term swing low is placed near 56,590, said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates. “If it sustains below 56,590, a fresh round of weakness could be expected. On the higher side, 57,280 will act as an immediate hurdle,” he said.

Nifty Bank formed a sizable bear candle signaling profit booking at higher levels. The index on expected lines in the last 10 sessions is seen consolidating in the range 56,500-57,600, said Bajaj Broking. “We expect that a move beyond this range will signal the next directional move in the index. Key short-term term support is placed at 56,000–55,500 regions,” it added.