Stock market today: Gift Nifty up 200 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian stock markets are staring for another gap-up opening on Monday amid the de-escalating tensions between the US President Donald Trump and US Federal Reserve Jerome Powell. Also, hopes of lesser tariffs on China are also supporting the sentiments for equities across the globe, which may trigger another rally at Dalal Street.

Nifty futures on the NSE International Exchange traded 201.50 points, or 0.93 per cent, lower at 24,370.50, hinting at a negative start for the domestic market on Wednesday. Asian stock markets were enjoying a much-needed relief rally on Wednesday after the US President Donald Trump said he had no plans to fire the US Federal Reserve Chairman Jerome Powell, and hinted at lower tariffs for China.

In the Asian pack, Japan's Nikkei soared 1.75 per cent, while Australia's ASX 200 and New Zealand's DJ soared more than 1.6 per cent each. Hang Kong's Hang Seng gained more than 1.5 per cent in the early trade, while South Korean KOSPI gained 1.35 per cent. However, Shanghai Composite nudged lower.

A pause after a strong uptrend is normal. While strong domestic fundamentals continue to provide support, underperformance in the US markets is capping the upside momentum, said Ajit Mishra, SVP of Research at Religare Broking. "However, the overall tone remains positive," he said.

US stocks rebounded amid a spate of quarterly earnings reports and hints at the de-escalation tariff concerns. The Dow Jones Industrial Average rose 1,016.57 points, or 2.66 per cent, to 39,186.98, the S&P 500 surged 129.56 points, or 2.51 per cent, to 5,287.76 and the Nasdaq Composite gained 429.52 points, or 2.71 per cent, to 16,300.42.

"We expect the gradual up-move to continue in the market on hopes of a Bilateral Trade Agreement between India and US, sustained FII buying and supportive RBI policies," said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

The US dollar jumped broadly against major currencies on Wednesday as investors heaved a sigh of relief after President Trump backed away from threats of firing Fed Chair Powell.  On the other hand, safe-haven gold ran into profit-taking and slipped 0.8 per cent to $3,353 an ounce.

Oil prices rose almost 1 per cent in early trade on Wednesday, extending the prior day's gains as investors weighed a fresh round of sanctions on Iran, a drop in U.S. crude stocks and a softer tone from Donald Trump on the Federal Reserve. Brent crude futures rose 0.9 per cent, to $68.05 a barrel, while US West Texas Intermediate crude was at $64.27 a barrel, up 0.94 per cent.

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 1,290.43 crore on Tuesday. On the other hand, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 885.63 crore.

Narinder Wadhwa, Managing Director & CEO of SKI Capital Services said that FIIs have turned net buyers on the back of attractive valuations post-correction, macro stability & policy continuity, central bank support & liquidity comfort and favorable global positioning

Nifty outlook
The current market texture is bullish but overbought, hence range-bound activity is likely to continue in the near future, said Shrikant Chouhan, Head Equity Research at Kotak Securities. 24,100/79,400 and 24,000/79,000 will act as key support zones, while 24,250-24,350/79,800-80,000 could serve as key resistance areas for the bulls. If the index falls below 24,000/79,000, sentiment could change," it said.

In the short term, the market appears optimistic but cautious. As long as the Nifty remains above 23,850, the bias stays with the bulls. A breakout past 24,250–24,300 could ignite renewed momentum, whereas a drop below 23,850 may lead to mild profit booking towards 23,700, said Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities.

Nifty Bank outlook
"Nifty Bank on expected lines almost tested the resistance area of 56,000 on Tuesday session. We expect the index to maintain overall positive bias and head towards the 56,800 zone in the coming weeks," said Bajaj Broking. Failure to move above 56,000 levels will lead to some consolidation in the range of 54,400-56,000 in the coming sessions, it added.

The Bank Nifty index opened on a positive note and continued bullish momentum, ultimately settling on a bullish note at 55,647, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates. "Going forward, 56,000 will act as a stiff resistance, while 54,470 remains a crucial support zone. Short-term traders are advised to book profits near 56,000 and look to re-enter on dips," he said.