Stock market today: Gift Nifty 100 pts; Key levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices are to open higher on Friday, extending the bull run on Dalal Street. Positive domestic indicators, along with optimism from the global cues are set to support the trader sentiments at Dalal Street. However, mixed performance of the US and Asian stocks is likely to put its weight during the session.

Nifty futures on the NSE International Exchange traded 99.30 points, or 0.40 per cent, higher at 25,178, hinting at a positive start for the domestic market on Friday. Major Asian stocks wobbled in the early trade on Friday. Nikkei and Hang were down half a per cent each, while KOSPI was little changed.

Palka Arora Chopra, Director, Master Capital Services said that after easing of tensions with Pakistan on borders, other factors including potential RBI rate cuts, easing inflation, possibilities of trade agreement between the US and India and positive FIIs flows is boosting the market confidence.

Wall Street indices were mixed in choppy trading. The Dow Jones Industrial Average rose 271.69 points, or 0.65 per cent, to 42,322.75, the S&P 500 gained 24.35 points, or 0.41 per cent, to 5,916.93. However, the Nasdaq Composite fell 34.49 points, or 0.18 per cent, to 19,112.32.

Oil prices edged up on Friday following a sharp drop in the previous session, heading for a weekly gain of more than 1 per cent as US-China trade optimism outweighed the prospects of Iranian supply returning to the market. Brent crude futures rose 0.26 per cent to $64.70, while US West Texas Intermediate crude futures rose 0.29 per cent to $61.80.

The US dollar fell in tandem with Treasury yields on Friday after downside surprises on US economic data this week cemented bets of more Federal Reserve rate cuts this year. Against a basket of currencies , the dollar fell 0.1 per cent to 100.70. Gold jumped 1 per cent to $3,220.45 per ounce.

Investors now await key global data releases—US initial jobless claims, US retail sales, and Japan’s GDP—which could guide near-term market direction, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. He added that key earnings shall potentially drive the stock-specific action.

Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 5,392.94 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 1,668.47 crore.

“The recent surge in the Nifty index has reinforced our positive outlook, We continue to advocate a ‘buy on dips’ strategy, with a strong emphasis on selective stock picking, especially in light of overbought conditions in certain segments,” said Ajit Mishra, SVP of Research at Religare Broking.

Nifty & Sensex outlook
Shrikant Chouhan, Head of Equity Research at Kotak Securities believes that the market’s outlook remains positive, but buying on intraday corrections and selling on rallies would be the ideal strategy for day traders. On the downside, 24,900/82,200 and 24,750/81,800 would act as key support zones, while 25,210–25,300/82,800-83,000 could serve as key resistance levels.

Short term trend of the Nifty remains positive as it is placed above its important short term moving averages, said Nandish Shah, Senior Derivative & Technical Research Analyst, HDFC Securities. “Next resistance for the Nifty is seen at 25,207, derived from 76.4 per cent retracement of the entire fall seen from 26,277 to 21,743.  On the downside, 24,800 could offer immediate support.”

Nifty Bank outlook
Nifty Bank formed a big bullish candle on the daily chart, indicating strength. On the upside, It will face strong resistance near the 55,500 and 56,100 levels, while on the downside, 54,440 will act as strong support, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates. Traders should monitor these levels for potential trading opportunities.

Bank Nifty structure is positive and dips should be used as a buying opportunity. The index is headed towards 56,400 levels in the short term, said Bajaj Broking. “The daily stochastic remains in uptrend, sustaining above its nine periods average. Key support for the short-term is placed at 54,500- 54,000 being the confluence of the Monday’s gap area and 20-DEMA,” it said.