Stock market today: Gift Nifty up 28 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices are set to open slightly higher on Thursday amid some positive cues over the trade deal between India and the US, where Donald Trump signaled a consensus soon.

However, weak Q1 earnings by India Inc is likely to dent the sentiments at Dalal Street.

Nifty futures on the NSE International Exchange traded 28.10 points, or 0.11 per cent, down at 25,274, hinting at a positive start for the domestic market on Thursday. Asian stocks dithered on Thursday ahead of earnings from heavyweight technology companies. Hang Seng and Nikkei shed marginal losses, while KOSPI tanked up to half a per cent.

Trade talks between the US and various countries will be of interest, particularly with China and obviously for India, said Vinay Paharia, CIO at PGIM India Mutual Fund. “While India has a larger services exposure to the US, it remains to be seen if India can benefit if global supply chains reduce their dependence on China,” he said.

Wall Street benchmarks closed modestly higher on Wednesday. The Dow Jones Industrial Average rose 231.49 points, or 0.53 per cent, to 44,254.78, and the S&P 500 gained 19.94 points, or 0.32 per cent, at 6,263.70. The Nasdaq Composite closed at 20,730.49, a jump of 52.69 points, or 0.26 per cent.

The dollar was on a fragile footing on Thursday, after having lost ground overnight on worries that the Fed’s independence could come under threat. The dollar was little changed at 98.49 against a basket of currencies, having lost 0.33 per cent overnight. The benchmark 10-year yield was little changed at 4.4673 per cent.

In the commodities, oil prices rose on Thursday, with Brent crude futures up 0.47 per cent at $68.84 a barrel. US crude futures gained 0.62 per cent to $66.79. Spot gold dipped 0.15 per cent to $3,341.29 an ounce. Bitcoin was up more than a per cent hovering around the $118,500 mark.

Mixed global cues and a lackluster start to the earnings season are keeping participants uncertain about the next directional move, said Ajit Mishra, SVP of Research at Religare Broking. “Traders should maintain a cautious stance and focus on stock selection based on relative strength and earnings outcomes,” he said.

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 1,858.15 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 1,223.55 crore on a net-net basis.

Nifty & Sensex outlook

The crucial 50-day DMA support at 25,000 for the Nifty remains intact. As long as this important level of 25,000 holds, bulls are likely to maintain their dominance. On the upside, 25331 could offer short-term resistance in Nifty, said Nandish Shah, Deputy Vice President at HDFC Securities.

Shrikant Chouhan, Head of Equity Research at Kotak Securities believes that 25,100/82,300 will remain as a key support zone for traders. “As long as the market trades above this level, the bullish sentiment is likely to continue. On the higher side, the market could bounce back to the 20-day SMA or 25,300/83,000. Further upside may also push the market up to 25,450/83,600.”

Nifty Bank outlook

A decisive break below the key support of 57,000 may lead to further downside toward 56,800 and 56,500, said Hardik Matalia, Derivative Analyst, Research at Choice Equity Broking. If these levels hold, a potential reversal could present fresh buying opportunities. On the upside, resistance is seen in the 57,300-57,500 range, with a breakout above this zone potentially triggering a move toward 58,000,” he said.

Bank Nifty formed a bullish engulfing candle on the daily chart, indicating strength. The short-term hurdle for Bank Nifty is placed in the 57,360-57,370 zone, while 56,775 act as immediate support, said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates. “Short-term traders are advised to wait for a breakout above 57,370 to initiate the next round of upmove.”

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