Stock market today: Gift Nifty up 25 points; key levels for Nifty, Sensex & Nifty Bank

Indian stock benchmark indices, trading just shy of record levels, are set to open mildly higher on Friday, as hopes around a lowering of global trade tensions and a potential rebound in domestic corporate earnings aided sentiment. However, traders will also be looking at developments around the US-India trade deal.

Nifty futures on the NSE International Exchange traded 24.60 points, or 0.09 per cent, up at 26,001.50, hinting at a muted start for the domestic market on Friday. Asian shares rallied on Friday as Wall Street earnings and signs of a thaw in US-China relations boosted investor sentiment. KOSPI surged nearly 2 per cent, while Nikkei was up 1.3 per cent. Hang Seng rose half a per cent.

Wall Street advanced on Thursday as investors mulled a mixed batch of corporate earnings and shifting geopolitical concerns. The Dow Jones Industrial Average rose 144.20 points, or 0.31 per cent, to 46,734.61, the S&P 500 gained 39.03 points, or 0.58 per cent, to 6,738.43 and the Nasdaq Composite jumped 201.40 points, or 0.89 per cent, to 22,941.80.

Oil prices surged after Washington announced late Wednesday new sanctions on major Russian suppliers Rosneft and Lukoil, adding pressure on the Kremlin to end the war in Ukraine. US crude retreated 0.7 per cent to $61.38 a barrel and Brent fell to $65.55 per barrel, down 0.7 per cent on the day.

The US dollar index added 0.1 per cent to 99.00. In cryptocurrencies, bitcoin gained 0.8 per cent to $110,512.30, and ether rose 1.2 per cent to $3,878.01. Spot gold was up 0.3 per cent at $4,138.52 per ounce, but still on track for its worst week since May.

Participants chose to book profits after the strong recent rally, especially following favorable developments such as optimism over an imminent India–US trade deal and stability on the global front, said Ajit Mishra, SVP of Research at Religare Broking. "Traders should remain cautious about overbought conditions in select pockets and focus on sectoral rotation to identify fresh opportunities"

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 1,165.94 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 3,893.73 crore on a net-net basis.

Nifty50 & Sensex outlook

Levels of 26,000/84,800 will act as key levels to watch. As long as the market trades below these levels, profit booking is likely to continue, said Shrikant Chouhan, Head of Equity Research at Kotak Securities. On the downside, the market could slip to 25,800-25,700 / 84,300-84,000. On the upside, above 26,000/84,800, the chances of reaching 26,100-26,150 / 85,300-85,500 would increase."

Nifty50 continues to trade above its crucial moving averages, which indicates that the broader trend remains intact. The RSI on the daily timeframe remains in bullish territory, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. "The zone of 25800-25750 will act as an important support while, on the upside, the zone of 26,000-26,050 will act as a crucial hurdle."

Nifty Bank outlook

Nifty Bank formed a red candle with a long upper shadow, indicating selling pressure at higher levels, said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates. "On the downside, immediate support is placed near 57,630, while the major hurdle is positioned around 58,580. As long as the index remains below 58,580, traders are advised to book profits on bounce and wait for a fresh bullish trigger."

Nifty Bank is expected to consolidate with positive bias, with immediate supports placed at 57,500-57,600 levels being the last week breakout area and a stronger demand zone is seen near 56,800-56,500 levels, said Bajaj Broking. "On the higher side, resistance is placed around 59,000 levels being the 138.2 per cent retracement of the entire previous decline."