Stock market today: Gift Nifty up 55 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices are set to open higher on Monday amid the optimism in the Asian peers. India has taken over Japan as the fourth largest economy of the world. Beside this, RBI’s strong dividend to the government and pre-arrival of the monsoon bodes well for the Indian equities. However, Trump’s tariff concerns may weigh in at Dalal Street

Nifty futures on the NSE International Exchange traded 55.60 points, or 0.22 per cent, higher at 24,935.50, hinting at a positive start for the domestic market on Monday. Stock markets across Asia edged higher on Monday. KOSPI rallied more than a per cent, while Nikkei was up 0.35 per cent. Hang Seng was slightly lower, while Shanghai was trading in green.

US stocks fell on Friday after President Donald Trump recommended 50 per cent tariffs on European goods, reopening a new front in global trade tensions. The Dow Jones Industrial Average fell 256.02 points, or 0.61 per cent, to 41,603.07, the S&P 500  lost 39.19 points, or 0.67 per cent, to 5,802.82 and the Nasdaq Composite dropped 188.53 points, or 1 per cent, to 18,737.21.

The euro and U.S. dollar rose against the safe-haven yen and Swiss franc on Monday after President Donald Trump set a July 9 deadline for a trade deal with the European Union. The euro rose 0.3 per cent to 162.60 yen, and added 0.2 per cent against the dollar to reach the highest since April 30 at $1.1382.

On the commodities front, crude prices traded higher, while gold eased marginally from a two-week high. Brent crude futures rose 0.6 per cent to $65.15 a barrel, while US West Texas Intermediate crude was up 0.6 per cent, at $61.87 a barrel. Gold dropped 0.41 per cent to $3,349.47 per ounce.

Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 1,794.59 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 299.78 crore on a net-net basis. The week gone by saw heavy selling from FIIs as they off-loaded shares worth Rs 11,591 crore. 

Despite heavy FII selling over the past few days, the Indian market showed resilience, supported by strong buying by DIIs and retail participants, reflecting continued confidence in India’s long-term growth prospects, said Vinod Nair, Head of Research, Geojit Investments.

Nifty & Sensex outlook
Nifty has found support at its 21-day EMA, indicating buying interest at lower levels. It is currently consolidating within a narrow range of 24,700–25,000, awaiting a breakout for further direction. 25,000 remains a crucial resistance level on the upside, said Choice Broking.

“A decisive breakout above this mark could trigger a fresh leg of the rally towards 25,250–25,350. On the downside, immediate support is placed at 24,700, followed by a stronger base near 24,500. This zone will be important to watch as any breakdown below it could attract short positions and shift the near-term bias to negative,” it added.

Amol Athawale, VP-Technical Research, Kotak Securities believes that 24,600/80,900 and 24,450/80,500 would be the key support zones for the short term traders while 25,000/82,300 would be the immediate resistance zone for the bulls.

“A successful breakout above 25,000/82,300 could push the market up to 25,150-25,500/82,700-83,600. On the other side, below 24,450/80,500 the sentiment could change. Below the same, the market could slip till 24,380/80,300,” he added. “Further down side may also continue which could drag the index up to 24,165/79,700.”

Nifty Bank outlook
Bajaj Broking expects Nifty Bank to extend the last 4 weeks’ consolidation in the broad range of 56,000-53,500. Only a move above 56,000 levels will signal acceleration of the up move. “Within the consolidation, we believe dips should be used as buying opportunities. Key support at 54,000-53,500 being the confluence of key retracement and 20 days EMA,” it said.

Nifty Bank formed a green candle following a hammer candle on the daily chart, indicating strength, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates. “On the upside, the index is facing resistance near 55,700 levels. A sustained move above this level could lead to a test of new all-time highs,” he said.