Nifty, Sensex, Nifty Bank outlook for today: GIFT Nifty down 8 points; key levels to watch

Indian equity markets are set to open little changed on Friday as investors await earnings reports from several heavyweight companies after market hours and oil prices ​hover around one-month highs on renewed US-Iran clashes. Asian markets were subdued, while IT stocks will be in focus after earnings of Wipro and Tech Mahindra.

Indian equities are expected to trade sideways to mixed amid weak global cues and ongoing geopolitical tensions in West Asia. With the Q1FY27 earnings season gathering pace, stock-specific action is likely to dominate. The IT sector will be in focus, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

GIFT Nifty, Asian markets & US stocks
GIFT Nifty Futures on the NSE International Exchange were 8.40 points, or 0.03 per cent, down at 24,088, hinting at a muted start for the domestic market on Friday. Asian stocks got off to a rocky start on ​Friday. Nikkei dropped more than 4 per cent, while Hang Seng was down 1.6 per cent.

Chip stocks pulled the US Stocks lower on Thursday as they continued to lead broader market moves despite generally upbeat US economic data and ‌ a strong start to the second-quarter earnings season. The Dow Jones Industrial ​Average fell 0.20 per cent to 52,553.32, the S&P 500 lost 0.51 per cent to 7,533.77 and the Nasdaq Composite shed 1.47 per cent to 25,881.95.

Crude, US dollar, gold & more
Oil prices were on the rise ​with Brent crude futures up 0.7 per cent to $84.83 a barrel, while US crude advanced 0.7 per cent to $79.49 per barrel. In currencies, the dollar held steady, was set to end the week little ​changed as receding expectations of ⁠Federal Reserve rate increases this year were offset by renewed safe-haven demand. spot gold was up 0.4 per cent at $3,985.64 an ounce.

Sentiment remained subdued amid mixed cues from the global peers. Geopolitical tensions in the Middle East kept the undertone cautious, better quarterly earnings on the domestic front helped limit the downside, said Ajit Mishra, SVP of Research at Religare Broking. We recommend maintaining a stock-specific approach while adhering to disciplined risk and position management."

FII-DII flows
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 4,205.56 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 2,986.41 crore on a net-net basis.

Nifty50, Sensex & India VIX outlook
The market hovered between 24,000/77,000 and 24,200/77,500 price ranges. A small candle on the daily charts and non-directional activity on intraday charts indicate indecisiveness between the bulls and the bears, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

"As long as the market is trading within the 24,000/7,7000 to 24,200/7,7500 range, the range-bound texture is likely to continue. On the positive side, above 24,200/7,7500, the market could move till 24,300-24,350/7,7800-7,8000. On the downside, below 24,000/7,7000, selling pressure is likely to accelerate. Below this level, the market could retest 23,800, or 23,750/7,6500-7,6300," he said.

Sensex continues to face strong rejection around its 100-Day EMA, indicating that higher levels are witnessing selling pressure. Immediate support is seen in the 76,500–76,800 zone, while 77,600–77,800 remains the immediate resistance area. The expected trading range is 76,500–77,800, and the overall market bias remains sideway, said Sachin Gupta, VP of Technical Research at Choice Equity Broking.

"Nifty is expected to find strong support in the 23,950–24,000 zone, while the 24,250–24,300 region is likely to act as an immediate resistance, with a broader hurdle placed near 24,500. Option chain data also indicates the highest put writing at the 24,000 strike, reinforcing it as a key support level," said Vatsal Bhuva, Technical Analyst at LKP Securities, suggesting a 'buy on dips' strategy.

India VIX declined, indicating easing volatility and suggesting that market participants are refraining from building aggressive directional positions ahead of key earnings announcements, said Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities

Nifty Bank outlook
Bank Nifty formed a bearish candle with small shadows in either direction, highlighting profit booking at higher levels as the index continues to trade below the 58,000 levels. it is consolidating in the range of 58,700-56,500 and only a breakout or breakdown will signal the next directional move. On the upside, 58,700 remains the immediate hurdle, Bajaj Broking said.

"A decisive close above this level would confirm a breakout from the ongoing consolidation and could trigger the next leg of the rally towards 59,300 and eventually 60,000 levels in the coming weeks. On the downside index has major support placed at 56,500-56,000, where the 20-week and 50-week EMAs, making it a strong demand zone," it added.

Nifty Bank formed a small bearish candle. It is oscillating near its 20-day EMA level. The momentum indicators and oscillators are in a sideways zone. The 58,100-58,200 zone is expected to act as a crucial resistance area, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

"A decisive move above 58,200 could trigger a strong upside rally towards 58,700, followed by 59,300 levels. On the other hand, the 57,100-57,000 zone will remain a key support area. A sustainable breakdown below 57,000 may accelerate selling pressure and drag the index towards the 56,500 level," it added.