Stock market today: Gift Nifty up 57 points; key levels for Nifty, Sensex & Nifty Bank

Indian equity benchmarks indices are likely to open slightly higher on Tuesday, extending the consecutive sessions of gains, with analysts citing the lack of fresh triggers and potentially thin trading volumes closer to the end of year. Trading volumes across global markets are usually thin at this time of the year ahead of the holiday season amid Christmas and New Year.

Nifty futures on the NSE International Exchange traded 57.10 points, or 0.22 per cent, up at 26,255, hinting at a positive start for the domestic market on Tuesday. Asia shares rose alongside precious metals on Tuesday. KOSPI and Hang Seng inched higher by around half-a-per cent each, while Nikkei gave up early gains.

Strong buying interest was seen in railway and defence stocks, driven by expectations from the upcoming Union Budget. On the macro front, investors will track the Q3 GDP data and consumer confidence data, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. "We expect markets to remain steady, supported by broad-based buying interest and favourable global cues."

US stocks closed higher to kick off the holiday-shortened trading week on Monday. The Dow Jones Industrial Average rose 227.79 points, or 0.47 per cent, to 48,362.68, the S&P 500 gained 43.99 points, or 0.64 per cent, to 6,878.49 and the Nasdaq Composite jumped 121.21 points, or 0.52 per cent, to 23,428.83.

The US tried seizing more tankers carrying Venezuelan oil. Oil prices eased a touch, having risen on Monday on worries about supply disruption. Brent crude futures edged 0.06 per cent lower to $62.03 a barrel, while U.S. crude fell 0.16 per cent to $57.92 per barrel. On the other hand, the dollar index eased a bit to 98.112 on Tuesday.

In precious metals, spot gold and spot silver vaulted to all-time highs, driven in part by safe-haven demand from escalating geopolitical tensions. Spot silver reached an all-time high at $69.59 per ounce on Tuesday, as firm industrial and investment demand, tightening inventories, geopolitical tensions and bets of further U.S. interest rate cuts continued to support prices.

The broader bias remains positive, and participants may look for buying opportunities on dips and participants stay cautious in the absence of strong domestic triggers, said Ajit Mishra, SVP of Research at Religare Broking. "With sectoral participation occurring on a rotational basis, we continue to prefer stocks that are leading price action within their respective sectors."

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 457.34 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 4,058.22 crore on a net-net basis.  

Sensex & Nifty outlook

The short-term market texture is bullish, but buy on intraday dips and sell on rallies would be the ideal strategy. On the downside, 26,100/85,300 and 26,050/85,000 would act as key support zones, while 26,200/85,700 would serve as an immediate resistance zone, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

A successful breakout above 26,200/85,700 could push the market towards 26,320–26,350/86,000-86,200. However, below 26,050/85,000, the uptrend would become vulnerable, he said.

Nifty has formed a bullish higher-top, higher-bottom structure on the daily chart by closing above the key resistance level of 26,058, said Nandish Shah, Deputy Vice President at HDFC Securities. "Nifty could now extend its rise towards the next resistance levels, placed at 26,202 and 26,330. On the downside, the level of 26,000 is expected to act as a near-term support."  

Nifty Bank outlook

Nifty Bank is suggesting underlying strength and accumulation at support levels. Dips are being absorbed by buyers, keeping the broader trend constructive. Immediate resistance is placed at 59,600–59,700, while supports at 59,000 and 59,100 remain critical to preserve near-term stability in banking stocks, said Amruta Shinde, Technical & Derivative analyst at Choice Broking.

"Nifty Bank remains resilient, with buying emerging on declines—supported by notable strength in PSU banks and steady participation from private banks. We expect the index to extend consolidation and form a base in the range of 58,500-60,100 in the coming weeks," said Bajaj Broking

A strength above last week’s high of 59,533 will open upside towards the recent all time high of 60,100 levels in the coming weeks. The entire up move of the last 2 months is well channelled signaling sustained demand at elevated levels. Key support is placed at 58,300-58,600 levels, being the confluence of the 50 day EMA and recent breakout area, it adds.