Stock market today: Gift Nifty up 24 points; Key levels to watch for Nifty & Nifty Bank

Indian benchmark indices are set for a muted opening on Thursday with a positive bias amid mixed cues from the global peers. While the world is assessing the US-China trade deal, key economic data shall be keenly watched by the traders. US Fed’s chair Jerome Powell’s commentary later today shall also be in focus.

Nifty futures on the NSE International Exchange traded 24.10 points, or 0.10 per cent, higher at 24,740, hinting at a positive start for the domestic market on Thursday. Asian markets fall as investors assess US-China trade developments. Nikkei was down more than 1.2 per cent, while Hang Seng, KOSPI and Shanghai fell up to half a per cent.

Investors focus shifts to key global events scheduled for Thursday, including GDP data from the UK and Japan and US initial jobless claims, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. “The positive momentum is likely to persist, supported by easing geopolitical tensions, trade agreements progress and improving macroeconomic stability,” he said.

The US stocks saw a mixed session on Wednesday as investors waited for the next batch of economic data. The Dow Jones Industrial Average fell 89.37 points, or 0.21 per cent, to 42,051.06. The S&P 500 gained 6.03 points, or 0.10 per cent, to 5,892.58. The Nasdaq Composite gained 136.72 points, or 0.72 per cent, to 19,146.81.

Oil prices lost nearly $1 in early trade on Thursday on expectations of a potential US-Iran nuclear deal, while an unexpected build in US crude oil inventories last week heightened investor concerns about oversupply. Brent crude futures fell 1.3 per cent to $65.21 a barrel, while US West Texas Intermediate (WTI) crude futures slid 1.5 per cent to $62.23.

The dollar wobbled on Thursday in a turbulent week that saw investor relief at the US-China tariff truce give way to a cautious mood amid uncertainty over the shape of various trade deals. The dollar index was steady at 101. Spot gold prices inched marginally up to $3,179.16 per ounce.

Ajit Mishra, SVP of Research at Religare Broking believes that this is a healthy pause and it may continue for another session or two. In the meantime, traders should maintain a stock-specific approach and use this consolidation phase to accumulate fundamentally strong names. Themes such as defense, railways, and PSU banking are also offering trading opportunities, he said.

Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 931.80 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 316.31 crore.

Nifty outlook
As long as Nifty stays above the crucial support level of 24,400, the bulls are likely to maintain their grip. In the near term, the index might move towards the 24,850–25,000 range, said Rupak De, Senior Technical Analyst at LKP Securities. “However, a drop below 24,400 could delay this upward trajectory and lead to further consolidation,” he said.

Nifty is still holding above the golden retracement level of the entire decline from the all-time high, as well as the bullish gap formed on Monday. This reinforces our positive bias, favouring a strategy of buying on dips and booking profits near key resistance levels, said Rajesh Bhosale, Equity Technical Analyst at Angel One.

“The immediate support is seen at 24500, while resistance is placed around 24800. Interestingly, while the key indices moved sideways, the broader market was buzzing with strong participation, with nearly four advancing stocks for every decliner. Intraday dips are a reminder to stay vigilant and selective in stock picking to maintain outperformance,” he said.

Nifty Bank outlook
Nifty Bank is hovering around the 9 EMA and remains slightly above the 20 DMA, reflecting a sideways consolidation phase within a larger uptrend. The RSI has cooled off and is now hovering around the 58 zone, suggesting weakening momentum without turning bearish, said Om Mehra, Technical Research Analyst at SAMCO Securities.

“The broader structure still appears to be bullish as long as the index sustains above the support zone of 54,400–54,250. On a wider time frame, a breakdown below this region could drag it toward the lower band of the channel near 53,500,” he added. “The resistance is seen around 55,220. A decisive close above this level could signal a breakout from the declining trendline.”

Nifty Bank formed a small red candle with shadows on either side, suggesting indecision. The immediate hurdle for Nifty Bank is seen at 55,500, while major support is placed near 53,480, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates. “Traders are advised to adopt a sell-on-bounce strategy in Bank Nifty for the short term.”