Stock market today: Gift Nifty down 21 points; key levels for Nifty, Sensex & Nifty Bank

Indian equity benchmark indices are likely to open a muted note on Wednesday, tracking Asian markets, after mixed signals from US jobs data failed to move the needle on interest rate outlook. Persistent FIIs outflows from Indian equities and a depreciation in rupee continue to weigh on sentiments amid a delay in potential trade deal between India and the US.

Nifty futures on the NSE International Exchange traded 21.20 points, or 0.08 per cent, down at 25,919.50, hinting at a muted start for the domestic market on Wednesday. Asia shares were hesitant on Wednesday after a mixed US jobs reading. Nikkei inched up slightly, while Hang Seng crept higher. KOSPI was up nearly 0.7 per cent.

"We expect demand momentum to remain strong in power cables, driven by healthy demand in the power generation, transmission and distribution sectors, increasing capex in data centres, strong real estate demand, and infrastructure projects. The Indian markets trade sideways in the absence of any meaningful near-term triggers, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

The Nasdaq recovered on Tuesday to close higher while the S&P 500 and the Dow closed lower, impacted by declines in healthcare and energy stocks. The Dow Jones Industrial Average fell 302.30 points, or 0.62 per cent, to 48,114.26, the S&P 500 lost 16.25 points, or 0.24 per cent, to 6,800.26 and the Nasdaq Composite gained 54.05 points, or 0.23 per cent, to 23,111.46.

The US dollar was steady on Wednesday and near its lowest since the start of October after data showed the labour market remained soft, leaving investors on edge about when the next rate cut from the Federal Reserve is likely to come. The dollar index was at 98.193, falling 9.5 per cent this year. Elsewhere, spot gold was up 0.35 per cent at $4,318.99 an ounce.

Oil prices had slid as the prospect of a Russia-Ukraine peace deal appeared to strengthen, raising expectations sanctions could be eased. US crude futures advanced 1.5 per cent to $56.12 per barrel, while Brent crude futures was up 0.8 per cent to $59.37 a barrel, reversing their steep losses from overnight.

"We maintain our consolidation view but continued deterioration in the currency could widen the trading range," said Ajit Mishra, SVP of Research at Religare Broking. "In the current environment, we continue to recommend a stock-specific trading approach, with a preference for hedged positions given the prevailing volatility and choppy market conditions."

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 2,381.92 crore on Tuesday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 1,077.48 crore on a net-net basis.
 

Nifty50 & Sensex outlook

The intraday market texture is weak, but a fresh selloff is possible only after the dismissal of 25,800/84,300. Below this level, the market could retest the levels of 25,700–25,650/84,000-83,800, said Shrikant Chouhan, Head of Equity Research at Kotak Securities. "On the flip side, 25,920/84,800 would be the immediate resistance zone for day traders. If it succeeds in trading above this level, then it could bounce back to 26,050–26,100/85,200-85,400."

Nifty50 continues to consolidate within the broader 25,850–25,950 range, indicating a lack of directional conviction among participants, said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking. "Immediate resistance is placed between 26,000 and 26,050, and a sustained breakout above this zone could pave the way toward 26,150. On the downside, key support levels are seen at 25,750 and 25,700, which remain crucial to prevent further deterioration in the near term."
 

Nifty Bank outlook

Nifty Bank on expected lines is seen consolidating and forming a base in the range of 58,500-60,100. It to extend the current consolidation in the coming sessions, said Bajaj Broking. "Short-term support is placed at 58,200-58,600 levels being the confluence of the recent low and the major breakout area. On the higher side a move above 59,500 will open further upside towards the all-time high of 60100 in the coming week," it said.

Nifty Bank has crucial support at 58,800; a decisive close below this could open downside towards its 50-day SMA placed in the 58,300–58,200 zone. The chart structure appears slightly weak, said Vatsal Bhuva, Technical Analyst at LKP Securities. "On the upside, immediate resistance lies at 59,300 and 59,500 levels. A sustainable bullish view is advisable only if it manages a closing above 59,500."