Stock market news: Gift Nifty down 98 points; key levels for Nifty, Sensex & Nifty Bank

Indian equity benchmark indices are set to open lower on Tuesday, tracking an overnight slide on Wall Street, as risk sentiment soured on renewed uncertainty around President Donald Trump's tariff policy and persistent fears of AI-driven disruption.  Tensions continued to simmer between the US and Iran, pushing oil prices higher.

Nifty futures on the NSE International Exchange were up 98.20 points, or 0.38 per cent, up at 25,607, hinting at a negative start for the domestic market on Tuesday. Asian stock markets stuttered in early trade on Tuesday. Japan was up nearly a per cent, while Hang Seng lost up to 2 per cent. KOSPI also edged lower.

Wall Street stocks tumbled on Monday, as ongoing fears of AI-related disruption. The Dow Jones Industrial Average fell 821.91 points, or 1.66 per cent, to 48,804.06, the S&P 500 lost 71.76 points, or 1.04 per cent, to 6,837.75 and the Nasdaq Composite lost 258.80 points, or 1.13 per cent, to 22,627.27.  

The dollar languished on Tuesday as Asian markets weighed the fallout on global trade from renewed turbulence over US President Donald Trump's tariff regime. The dollar index was flat at 97.69, after a swoon of as much as 0.45 per cent in the prior session.

In commodities markets, WTI crude edged down 0.1 per cent to $66.23, as tensions continued to simmer between the US and Iran. All of this uneasiness pushed the safe-haven gold up 0.3 per cent to $5,244.96, while silver slipped 0.1 per cent to $88.12. Bitcoin climbed 0.4 per cent to $64,832.48,

Sentiment improved in reaction to the US Supreme Court striking down import tariffs, temporarily easing trade-related concerns and boosting risk appetite across global markets, said Ajit Mishra, SVP of Research at Religare Broking. "We reiterate participants should focus on stock selection and trade management, while the IT sector still appears vulnerable to further downside."

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 3,483.70 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 1,292.24 crore on a net-net basis.
 

Nifty50 & Sensex outlook

The market witnessed range-bound activity throughout the day, after a strong open. On the lower side, it took support near the 20-day SMA or 25,600/83,000, while 25,800/83,600 remains the crucial resistance zone for short-term traders. The 20-day SMA or 25,600/83,000 will act as an immediate reference point for day traders, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

"As long as the market is trading above this level, the bullish momentum is likely to continue. On the higher side, 25,800/83,600 would be the key resistance area for the bulls. A successful breakout of 25,800/83,600 could push the market up to 25,950–26,000/84,000-84,200. On the flip side, below 25,600/83,000, sentiment could change," it said.

A small bullish candle has been formed on the daily chart with gap up opening and with upper and lower shadow. Technically, this market action signals follow-through upmove with volatility, said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

"Presently, the market is forming consistent lower highs on the daily chart and there is a possibility of Nifty finding crucial overhead resistance around 25,800-25,850 levels in the short term and any weakness from here could find support around 25,550 levels. A decisive move above the hurdle of 25,900 levels is likely to change the trend on the upside," he said
 

Nifty Bank outlook

The daily chart pattern of Nifty Bank shows a bullish candle with a long upper shadow, indicating underlying buying support but highlighting selling pressure at higher levels. Going ahead, the region of 61,500–61,600 will act as a major hurdle, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

"A sustained breakout above 61,600 could unleash strong upside momentum toward 62,200, and further toward 62,600. On the flip side, immediate support lies in the 60,800–60,700 zone; holding above this zone will keep the short term structure positive, while a breakdown below it may trigger further downside pressure," he said.

Bank Nifty formed a high wave candle with a small real body and shadows in either direction signaling consolidation amid stock specific action. PSU banking stocks continue to outperform the private banking stocks. Bias remains positive and dips should be used as buying opportunity, with short term support seen at 60,500-60,200 levels being the confluence, said Bajaj Broking.

"Volatility is likely to remain elevated amid uncertain global cues. The near-term index is likely to trade in the range of 60,000-61,750. A decisive move beyond this range could trigger fresh directional momentum," it added.