Stock market today: Gift Nifty up 15 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices are set for a muted but positive opening on Friday amid a slew of positive cues. However, tension on borders with Pakistan continue to weigh on the sentiments of Dalal Street. Quarterly earnings, economic data, GST collections and tariff concerns de-escalation between US and China shall be other key factors for the market in the near term.

Nifty futures on the NSE International Exchange traded 15.10 points, or 0.06 per cent, higher at 24,433.50, hinting at a positive start for the domestic market on Friday. Major Asian stocks posted smart gains on Friday as Hong Kong’s Hang Seng soared 1.5 per cent, while Japan’s Nikkei, Australia’s ASX 200 and New Zealand’s DJ gained 0.50-0.75 per cent each.

The broad market performed well in April, driven by reduced tariff risks, a potential US-India trade deal, and strong FII inflows, said Vinod Nair, Head of Research at Geojit Investments. “However, momentum is being capped by rising tensions between India and Pakistan and muted Q4 results. This negative bias is expected to persist in the near term,” he said.

US stocks advance on Thursday after strong results from megacaps. The Dow Jones Industrial Average rose 83.60 points, or 0.21 per cent, to 40,752.96, the S&P 500 gained 35.08 points, or 0.63 per cent, to 5,604.14 and the Nasdaq Composite jumped 264.40 points, or 1.52 per cent, to 17,710.74.

Oil prices pulled ahead in early Asian hours on Friday after China said its door is open for talks with the United States, raising hopes of a de-escalation in a bitter trade war between the world’s two largest economies. Brent crude futures rose 0.6 per cent to $62.51 a barrel, while US West Texas Intermediate crude futures 0.6 per cent to $59.62 a barrel.

The US dollar headed for a third-straight weekly gain amid talks between US & China and better-than-expected economic data. The dollar index was little changed in early Asia trading, poised for a 0.5 per cent gain in a week Gold was hovering near to a two-week low pressured by signals of softening trade tensions.

Market sentiment remains cautious due to the ongoing India-Pakistan geo-political concerns. Both FIIs and DIIs have been net buyers lately, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. “We expect the market to trade in a range-bound manner with stock/sector specific action, driven by Q4 earnings announcements,” he said.

Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 50.57 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 1,792.15 crore. FIIs turned net buyers over the past eight sessions, buying Indian equities worth Rs 32,466.4 crore.

Investors remained watchful ahead of key earnings and developments on the geopolitical front. Meanwhile, foreign institutional investors continued to show buying interest, said Vikram Kasat, Head of Advisory at PL Capital. “Near-term movement will likely hinge on global cues and earnings momentum,” he said.

Nifty outlook
The Nifty continues to consolidate in a narrow range. Momentum remains strong, with the RSI holding above 50 and showing a bullish crossover, said Rupak De, Senior Technical Analyst at LKP Securities. “On the higher end, resistance is placed at 24,550 – a sustained move above this level could trigger a decent rally in the market. On the lower end, support is seen at 24,200,” he said.

Shrikant Chouhan, Head Equity Research at Kotak Securities believes that as long as the market trades below 24,450/80,500, the weak sentiment is likely to continue. On the downside, the market could retest the 24,000/79,300 level. Further downward movement may also continue, potentially dragging the index to 23,900/79,000, he said.

Nifty Bank outlook
The Bank Nifty index has formed a red candle following a shooting star, indicating underlying weakness. On the upside, 56,000 will act as a stiff hurdle for the index while on downside 54,450 will act as major support, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates.

Bank Nifty formed a bear candle with a lower high and lower low signaling profit booking, said Bajaj Broking. “”Key support is seen between 54,000-53,500, which corresponds to the gap-up region and the previous breakout zone. Volatility is expected to stay elevated due to ongoing geopolitical tensions, developments related to tariffs, and the unfolding Q4 earnings season,” it said.