Indian equity benchmark indices are set to open marginally higher on Friday with focus on information technology stocks after Tata Consultancy Services posted better-than-expected second-quarter revenue.
Market sentiment was also boosted by the return of over investors turning net buyers over the past three sessions.
Nifty futures on the NSE International Exchange traded 9.30 points, or 0.04 per cent, up at 25,264.50 hinting at a muted start for the domestic market on Friday. Asian stocks limped towards the end of the week on a shaky footing on Friday. Nikkei and Hang Seng fell up to a per cent, while KOSPI rose more than a per cent.
The market is anticipated to trade in a broad range with a positive bias, supported by strong domestic liquidity and improving global cues. Sector-stock specific action is likely to continue, aided by the onset of the festive season and expectations of healthy Q2FY26 earnings, said Siddhartha Khemka, Head of Research of Motilal Oswal Financial Services.
US stocks ended in negative territory on Thursday as investors took the opportunity to consolidate ahead of the third-quarter earnings season. The Dow Jones Industrial Average fell 243.36 points, or 0.52 per cent, to 46,358.42, the S&P 500 shed 18.61 points, or 0.28 per cent, to 6,735.11 and the Nasdaq Composite lost 18.75 points, or 0.08 per cent, to 23,024.63.
In energy markets, Brent crude edged up 0.1 per cent to $65.27 per barrel, after Israel’s government ratified a ceasefire with the Palestinian militant group Hamas on Friday. Gold edged down, extending declines after snapping a four-day winning streak, shortly after breaching the $4,000 mark for the first time and with evidence of the ebullience spilling across into other precious metals.
The yield on the benchmark 10-year Treasury bond fell to 4.1384 per cent compared with its US close of 4.148 per cent on Thursday. The US dollar index held steady near a two-month high at 99.37.
The pause in foreign outflows further eased investor concerns, reflecting confidence in India’s earnings resilience despite global uncertainties, said Ajit Mishra, SVP of Research at Religare Broking. “Amid this setup, traders should focus on identifying sectoral outperformers and use intermediate dips to accumulate quality names,” he said.
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 1,308.16 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 864.36 crore on a net-net basis.
Nifty50 & Sensex outlook
After a muted open once again, the market took support near 25,000/81,700 and bounced back sharply. A bullish candle on daily charts and a reversal formation on intraday charts indicate a further uptrend from the current levels, said Shrikant Chouhan, Head of Equity Research at Kotak Securities
“As long as the market is trading above 25,000/81,700, the uptrend is likely to continue. For the bulls, 25,200/82,200 and 25,250/82,300 would be the immediate resistance zones. A successful breakout above 25,250/82,300 could push the market towards 25,400-25,500/83,000-83,200. On the other hand, below 25,000/81,700, the uptrend would become vulnerable,” he said.
Nifty50 is trading above its key moving averages, reinforcing the underlying strength and suggesting that the short-term trend remains positive, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. “It is likely to test the 25,300, followed by the 25,450 in the short term. While, on the downside, the support shifted higher in the zone of 25,050-25,030 level.”
Nifty Bank outlook
Nifty Bank remains within a broader uptrend. The RSI is at 63, indicating the index is nearing bullish territory, which could lead to upward momentum. A strong support zone lies around 55,800, which has held recent declines, while the resistance zone near 56,500 continues to cap upside momentum, said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Nifty Bank on a daily scale found support near the recent breakout point and formed a bullish candle, indicating strength. The next key hurdle for Bank Nifty is placed near 56,500 levels, said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates.
“If the index sustains above 56,500, the rally could extend towards 57,000-57,500 levels. On the downside, the psychological level of 56,000 will act as immediate support for Bank Nifty, followed by the recent breakout point of 55,700. Hence, traders are advised to maintain a buy-on-dips strategy in the short term,” he said.