Stock market today: Gift Nifty down 35 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian equity benchmarks are likely to open a little lower on Tuesday after US President Donald Trump reiterated his threat of harsh tariffs on goods from India over its Russian oil purchases. Reacting to this, New Delhi called his attack 'unjustified' and vowed to protect its economic interests, deepening the trade rift between the two countries.

Nifty futures on the NSE International Exchange traded 34.60 points, or 0.14 per cent, down at 24,758.50, hinting at a negative start for the domestic market on Tuesday. Shares in Asia rose for a second consecutive session on Tuesday. Nikkei and KOSPI rose up to a per cent, while Hang Seng was seen flat.

Investors now await key global macro data – including US Services and Manufacturing PMI due tomorrow – along with key earnings from, which are likely to drive stock-specific action ahead of the RBI’s policy outcome, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

All three major US stock indexes scored big gains on Monday as investors sought bargains. The Dow Jones Industrial Average rose 585.06 points, or 1.34 per cent, to 44,173.64, the S&P 500 gained 91.93 points, or 1.47 per cent, at 6,329.94 and the Nasdaq Composite climbed 403.45 points, or 1.95 per cent, to 21,053.58.

The US dollar held most of its losses in the early Asian hours. The dollar index edged up 0.1 per cent after a two-day slide. Bitcoin was little changed at $114,866.06 after a two-day rally. In commodities, Spot gold was slightly higher at $3,381.4 per ounce.

Oil prices were little changed after three days of declines on mounting oversupply concerns, with the potential for more Russian supply disruptions providing support. Brent crude futures were flat at $68.76 per barrel, while US crude futures dipped 0.02 per cent to $66.28 a barrel.

Despite the volatility, there continues to be no dearth of trading opportunities across sectors, said Ajit Mishra, SVP of Research at Religare Broking. "Traders are advised to align their positions accordingly, with a strong emphasis on stock selection and effective trade management," he said.

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 2,566.51 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 4,386.29 crore on a net-net basis.
 

Nifty & Sensex outlook

Nifty remained in the green throughout the day. It has reclaimed the 21EMA, indicating improving sentiment. The RSI has exhibited a positive divergence again, pointing towards improving momentum, said Rupak De, Senior Technical Analyst at LKP Securities.

"A bullish Harami pattern has formed on the daily chart, signaling waning bearishness that could lead to a recovery in the short term. On the higher end, it might move towards 24850/25000. Support on the lower end, is placed at 24650/24500," he said.

For day traders, 24,550 / 80,600 and 24,500 / 80,500 would act as key support zones, while 24,850-24,950 / 81,500-81,800 could be the key resistance areas for the bulls, said Shrikant Chouhan, Head of Equity Research at Kotak Securities. "However, below 24,500 / 80,500, the sentiment could change. Below this level, traders may prefer to exit their long positions," he said.

Going ahead, the zone of 81400-81500 will act as an immediate hurdle for the index. While on the downside, the zone of 80600-80500 will act as crucial support, said SBI Securities.
 

Nifty Bank outlook

Nifty Bank has been in a short-term downtrend, with a series of lower highs and lows. The RSI is at 38, suggesting the index is approaching oversold levels, said Reliance Securities. "A bounce from the current support zone near 55,400 is possible, but strength will only be confirmed if the index breaks above the 55,900 resistance zone convincingly," it said.

Nifty Bank showed signs of uncertainty, closing flat near the previous day’s close, reflecting indecision among market participants, said Hardik Matalia, Derivative Analyst at Choice Broking. "Key support levels are placed at 55,500, followed by 55,400 and 55,000. Holding above these levels could allow for further upside, while resistance is expected in the 56,250–56,600 zone," he said.