Stock market today: Gift Nifty up 10 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices are likely to open on a muted note on Tuesday amid feeble domestic and global cues. Trump tariff concerns and US monetary policy will be the key triggers at the global level. On the other hand, Q4 earnings of India Inc and border tensions with Pakistan will be keenly gauged on the street.

Nifty futures on the NSE International Exchange traded 9.80 points, or 0.04 per cent, higher at 24,563.50, hinting at a muted start for the domestic market on Tuesday. Major Asian stock markets traded flat, with mild gains on Tuesday. Hang Seng, KOSPI and Shanghai were modestly up.

The US stocks snapped their winning streak as investors assessed US President Donald Trump's latest tariff announcement ahead of the Federal Reserve's monetary policy decision later this week. The Dow Jones Industrial Average fell 0.24 per cent to 41,218.83, the S&P 500 lost 0.64 per cent to 5,650.38 and the Nasdaq Composite shed 0.74 per cent  to 17,844.24.

Domestic investors remain cautious with selective bullish bets seen across the sectors barring banks, said Prashanth Tapse, Senior VP (Research) at Mehta Equities. "FIIs have been steadily buying into local equities over the past few weeks, which is encouraging for Indian markets despite uncertainty surrounding global tariffs and geopolitical tensions," he said.

Oil steadied on Tuesday after hitting four-year lows in the previous session that was driven by an OPEC+ decision to accelerate output increases, stoking fears of oversupply at a time when US tariffs have spurred concerns about demand. Brent crude futures rose 10 cents to $60.33 a barrel, while US West Texas Intermediate crude added 10 cents to $57.23 a barrel.

The dollar struggled to make headway on Tuesday as an unprecedented two-day surge in its Taiwanese counterpart spilled over to other regional peers and highlighted the fragility of the US currency. Against a basket of currencies, the dollar was up 0.2 per cent at 100.04.

The market's momentum is moderating, with action shifting from broad-based movements to stock and sector-specific trends based on results, said Vinod Nair, Head of Research, Geojit Investments. "Q4 results to date have been sluggish, and there is a thin layer of caution due to border tensions, which could have a short-term impact on the market," he said.

Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 497.79 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 2,788.66 crore.

"We are witnessing rotational buying across sectors, which is helping the index maintain its positive tone despite the consolidation," said Ajit Mishra – SVP, Research at Religare Broking. "However, participation from the banking sector is crucial, as it could provide the necessary momentum. Investors are advised to maintain a 'buy on dips' approach," he said.

Nifty outlook
Shrikant Chouhan, Head Equity Research at Kotak Securities sees that 24,375/8,0500 would act as a key support zone for the trend following traders. Above the same, the market could move up to 24,600-24,675/81,000-81,300. On the other side, dismissal of 24,375/8,0500 could trigger a quick intraday correction and the market could retest the level of 24,300-24,250/80,200-80,000.
 

"The Nifty index continues to trade within a narrow range of 24,200 to 25,500, with firm support at the 24,200–24,250 zone and resistance around 24,500–24,550. While a decisive breakout above 24,550 could spark bullish momentum towards 25,000, Monday’s small-bodied candlestick suggests that short-term consolidation may persist, said Vatsal Bhuva, Technical Analyst at LKP Securities.

Nifty Bank outlook
A sustained move above the recent high of 56,098 could trigger further upside toward the 56,800 levels in the coming weeks. On the downside, key support is seen between 54,000-53,500, which corresponds to the gap-up region and the previous significant breakout zone, said Bajaj Broking. "Any dips towards the support area should be used as a buying opportunity," it said.

Bank Nifty formed a red candle with a long upper shadow, reflecting uncertainty at higher levels, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates. "Resistance for Bank nifty index is placed at 55,700 and 56,000, while key support lies at 54,450. A firm break below 54,450 may trigger fresh selling pressure, potentially dragging the index towards 54,000," he said.