Stock market today: Gift Nifty up 56 pts; levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices are likely to open on a positive note on Tuesday amid positive global cues. US stocks mostly advanced in the overnight trade, while Asian stocks remained mixed. Developments around the US and India trade deal shall be the key for the trader at Dalal Street along with Q1 earnings.

Nifty futures on the NSE International Exchange traded 56.40 points, or 0.22 per cent, down at 25,184, hinting at a positive start for the domestic market on Tuesday. Asian share markets struggled to hold their ground near a four-year peak on Tuesday. Japan's Nikkei was up 0.16 per cent , while Hang Seng shed 0.25 per cent. KOSPI was down half a per cent.

Wall Street stocks mostly advanced on Monday, while Treasury yields softened at the top of a busy week of corporate earnings reports. The Dow Jones Industrial Average fell 18.66 points, or 0.04 per cent, to 44,323.53, the S&P 500 rose 8.89 points, or 0.14 per cent, to 6,305.68 and the Nasdaq Composite gained 78.52 points, or 0.38 per cent, to 20,974.18.

The dollar traded in a tight range on Tuesday after a brief fall at the start of the week, as investors watched out for any progress on trade talks ahead of an August 1 deadline for countries to strike deals with the US or face steep tariffs. The dollar index measure against six other key currencies was at 97.905.

In commodities, oil prices edged lower on concerns that the brewing trade war between major crude consumers the US and the European Union will curb fuel demand. Brent crude futures fell 0.35 per cent, to $68.97 a barrel, while US West Texas Intermediate crude eased 0.31 per cent to $66.99 per barrel. Spot gold added more than a per cent to fetch $3,388.68 an ounce.

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 1,681.23 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 3,578.43 crore on a net-net basis.
 

Nifty & Sensex Outlook

Shrikant Chouhan, Head of Equity Research at Kotak Securities said that a reversal intraday formation and a bullish candle near the 50-day SMA indicate that a pullback formation is likely to continue in the near future. "For traders, 25,000/82,000 and 24,900/81,500 would act as key support zones. As long as the market is trading above this level, the pullback formation is likely to continue."

24,900 remains a sacrosanct support level, a make-or-break zone for the bulls. As long as this level holds, the broader outlook remains constructive, and traders can continue with a positive bias, said  Rajesh Bhosale, Equity Technical Analyst, Angel One. "On the upside, the 25200–25250 zone, which coincides with the 20DEMA and last week’s swing high, will be a key resistance," he said.
 

Nifty Bank outlook

Nifty Bank formed a strong bullish candle on the daily chart, marked by a higher high and higher low, indicating renewed buying interest following the recent two-session pullback, said Bajaj Broking. "Going forward, the index is poised to extend its upward move towards the 57,250 level, which coincides with the trendline resistance drawn from recent swing highs," it added.

Nifty Bank formed a bullish candle, signaling renewed buying interest. A sustained move below 56,800 could invite weakness, with the next key supports placed at 56,600 and 56,230, said Hardik Matalia, Derivative Analyst at Choice Broking. "However, if these levels hold, a reversal could offer fresh buying opportunities. On the upside, resistance is expected around 57,170 and 57,350."