Stock market today: Gift Nifty down 32 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices may open on a muted note on Tuesday amid feeble global cues, consistent FII selling and rising tensions in the Middle East. Traders are likely to remain on the tenterhooks as US President Donald Trump’s call for everyone to evacuate Tehran. However, easing signs of US inflation may provide some support.

Nifty futures on the NSE International Exchange traded 31.70 points, or 0.13 per cent, lower at 24,964.50, hinting at a muted start for the domestic market on Tuesday. Asian stocks were mixed on Tuesday. Japan’s Nikkei and South Korean KOSPI gained more than half a per cent, while Shanghai & Hong Kong slipped.

Investors would be closing following Bank of Japan’s interest rate decision and US May retail sales data to be released later on Monday, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. “We expect the market to remain watchful, tracking global cues and macro-economic data,” he said.

US stocks closed higher on Monday amid easing investor concerns about the potential for higher energy prices to stoke inflation. The Dow Jones Industrial Average rose 317.30 points, or 0.75 per cent, to 42,515.09; the S&P 500 gained 56.14 points, or 0.94 per cent, to 6,033.11 and the Nasdaq Composite jumped 294.39 points, or 1.52 per cent, to 19,701.21.

The dollar firmed slightly on Tuesday though most currencies held tight ranges as investors remained spooked by ongoing tensions in the Middle East and awaited upcoming central bank decisions. Against a basket of currencies, the dollar firmed slightly at 98.23.

In commodities, the risks of prolonged unrest in the Middle East and disruption to oil supply sent prices higher. Brent crude futures contract was last up 0.34 per cent at $73.47 a barrel. West Texas Intermediate crude was last up 0.43 per cent at $72.09. Gold prices were fetching $3,393.05 per ounce, up 0.3 per cent on the day.

The market’s resilience amid lingering geopolitical tensions is encouraging. However, participants should remain cautious and not get carried away by a single-day rebound, said Ajit Mishra, SVP of Research at Religare Broking. “We recommend maintaining a stock-specific trading approach, given the mixed trends across sectors, with a preference for relatively less volatile counters.”

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 2,539.42 crore on Monday. On the other hand, domestic institutional investors (DIIs) remained buyers of Indian equities to the tune of Rs 5,780.96 crore on a net-net basis.
 

Nifty & Sensex outlook

Nifty50 formed a long bull candle on the daily chart, suggesting it has surpassed the hurdle of the recent opening downside gap area at 24825 levels, said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. “The underlying trend continues to be positive. Nifty is expected to move towards the next hurdle of 25100-25200 levels in the next few sessions. Immediate support is placed at 24800.” he said.

Shrikant Chouhan, Head Equity Research, Kotak Securities believes that the 20-day SMA or the 24,850/8,1500 and 24,775/81,200 levels are key support zones for day traders, while 25,100/82,300 and 25,150/82,500 would act as crucial resistance levels for the bulls. Buying on intraday dips and selling on rallies would be the ideal strategy, he said.
 

Nifty Bank outlook

Bajaj Broking has formed a bull candle with a higher high and higher low and in the process filled its Friday’s gap down area and 20 days EMA. “In the coming session a move above 56,000 levels will open further upside towards 56600 and 57,000 levels in the coming sessions. On the downside only a breach below 55,000 levels will open downside towards the key support area of 54,500-55,000m” it said.