Stock market today: Nifty up 70 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices are likely to open higher on Wednesday amid positive cues from the Asian peers. Japan's trade deal with the US supported the sentiments. However, delay in deal with India and muted Q1 earnings is lagging on the markets. Traders will keenly await for macroeconomic cues as well.

Nifty futures on the NSE International Exchange traded 69.10 points, or 0.28 per cent, down at 25,163, hinting at a positive start for the domestic market on Wednesday. Asian stocks were trading sharply higher after the US-Japan trade deal. Nikkei surged more than 3 per cent, while Hang Seng was up 0.7 per cent. KOSPI eked out some losses.

Investors now await commentary from Fed Chair Powell later tonight for clues on the US rate trajectory, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. Markets are likely to stay range-bound in the near term, with focus on ongoing corporate earnings, he said.

Wall Street stocks settled mixed on Tuesday  as investors assessed a spate of mixed earnings. The Dow Jones Industrial Average rose 179.12 points, or 0.40 per cent, to 44,502.19, the S&P 500 rose 3.99 points, or 0.06 per cent, to 6,309.59 and the Nasdaq Composite fell 81.49 points, or 0.39 per cent, to 20,892.69.

In the foreign exchange market, moves are a little muted with the dollar holding onto overnight losses along with lower Treasury yields. The dollar index was flat at 97.45, having slipped 0.4 per cent overnight for its third straight day of declines. Benchmark 10-year US Treasury yields ticked up 2 basis points to 4.3559 per cent.

In commodities, oil prices gained a little on Wednesday. US crude rose 0.4 per cent to $65.60 per barrel, while Brent was at $68.88 per barrel, up 0.4 per cent. Spot gold prices were steady at $3,429 an ounce, as risk appetite improved after US President Donald Trump announced a trade deal with Japan.

Ajit Mishra, SVP of Research at Religare Broking said that the market continues to lack clear direction amid mixed earnings announcements and muted global cues. "We maintain a cautious stance and traders should adopt a hedged approach and focus on fundamentally strong counters, with an emphasis on earnings performance," he said.

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 3,548.92 crore on Tuesday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 5,239.77 crore on a net-net basis.

Nifty & Sensex outlook

The Nifty failed to close above its 5-Day DEMA resistance, positioned at 25093. However, the positional support of the 50-Day DEMA remains well intact at 24943. Looking ahead, 25255 could offer resistance in the Nifty, said Nandish Shah, Deputy Vice President at HDFC Securities.

Shrikant Chouhan, Head of Equity Research at Kotak Securities believes that the current market texture is non-directional. "For traders, the 25,000/82,200 mark would be the key support zone. As long as the market trades above this level, a pullback formation is likely to continue. On the higher side, 25,200/82,800 and the 20-day SMA or 25,325/83100 would be the key resistance," he said.

Nifty Bank outlook

Nifty Bank formed a bear candle signaling profit booking at higher levels around the last week high and the trendline resistance drawn from recent swing highs, said Bajaj Broking. "A decisive breakout above the resistance of 57,300 would open the door for a further rally towards the 58,000 mark. On the downside, immediate support is seen in the 56,000–55,700 zone," it added.

On the downside, immediate support is placed at 56,500, followed by a stronger support zone in the 56,300–56,000 range for Nifty Bank, said Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking. "Until a breakout occurs, the near-term trend remains cautious, and traders are advised to approach the market with a sell-on-rise strategy and proper risk management."