Sensex, Nifty slip over half a per cent each; key levels to watch out for

Domestic benchmarks slipped over 0.5 per cent in Thursday's trade amid investors' concerns over a fresh context in the emerging US-China trade deal. Last checked, the 30-share BSE Sensex slumped 469 points or 0.58 per cent to trade at 80,862 while the broader NSE barometer Nifty slipped 126 points or 0.51 per cent to 24,540. Index-heavyweights such as HDFC Bank, Infosys, Reliance Industries Ltd, ICICI Bank, Tata Consultancy Services (TCS) and Kotak Mahindra Bank were the major contributors to the fall.

The sustained robust FII buying, which lifted the large-caps, is likely to weaken in the new context of trade deal emerging between the US and China, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments. "The possibility of a 'Sell India; Buy China' tactical FII trade cannot be ruled out now. This will weigh on large-caps and strengthen the case for a further rally in mid- and small-caps, despite the valuation concerns," he added.

The focus of market participants has shifted to key global events scheduled today, including the UK and Japan's GDP numbers and US job data, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

On the global front, Asian markets were also seen trading lower. South Korea's Kospi index was down 0.57 per cent, Hong Kong's Hang Seng tanked 0.55 per cent, Shanghai Composite index slipped 0.49 per cent and Japan's Nikkei index slumped 0.94 per cent.

Nifty outlook 

"The trend is evenly poised with immediate range sighted as 24,770-24,570. A symmetrical triangle pattern in the daily chart tilts the trend in favour of upsides, aiming 25,200, but momentum indicators do not favour a vertical rise right away. Downsides, on the other hand, also look limited, with the 24,500-24,400 region appearing capable of arresting attempts to crack down," said Anand James, Chief Market Strategist at Geojit Investments.

Nifty Bank outlook

"For Nifty Bank, a sustained move below the key support level of 54,500 could lead to further downside, with immediate support placed at 54,250 and 54,000. Conversely, if the index holds above these support levels and manages a reversal, it may present fresh buying opportunities. Resistance on the higher side is seen at 55,000 and 55,500, with a decisive close above this range likely to trigger a rally toward 56,000," said Hardik Matalia, Derivative Analyst at Choice Broking.

Meanwhile, foreign institutional investors (FIIs) bought Rs 931.80 crore worth of shares on a net basis during the previous session, while domestic institutional investors (DIIs) purchased Rs 316.31 crore worth of equity, exchange data showed.