Stock market today: Gift Nifty down 67 pts; key levels for Nifty, Sensex & Nifty Bank

Indian benchmark indices are likely to open lower on Friday as the profit booking dent the sentiments at Dalal Street. The hawkish tone of the US Federal Reserve has shaken the equities across the globe and traders will remain anxious ahead of the Jackson Hole Symposium due this week.

Nifty futures on the NSE International Exchange traded 67 points, or 0.27 per cent, down at 25,055.0, hinting at a negative start for the domestic market on Friday. Stocks in Asia edged higher in a shaky start on Friday. KOSPI gained more than a per cent, while Nikkei and Hang Seng added nearly half a per cent.

India’s record-high composite PMI in August, reflecting strong expansion in both manufacturing and services, may provide stability in the near term, said Vinod Nair, Head of Research at Geojit Investments. "Investors remain cautious ahead of the upcoming Jackson Hole symposium on Friday, and rising domestic bond yields due to fiscal concerns surrounding GST rationalization."

Wall Street's main indexes fell on Thursday as investors feared potentially hawkish remarks by the Federal Reserve chair on Friday. The Dow Jones Industrial Average fell 152.81 points, or 0.34 per cent, to 44,785.50, the S&P 500 lost 25.61 points, or 0.40 per cent, to 6,370.17 and the Nasdaq Composite lost 72.54 points, or 0.34 per cent, to 21,100.31.

The US dollar index was steady at 98.60 after four consecutive days of gains, as traders parsed speeches from Fed officials who appeared lukewarm to the idea of an interest rate cut next month. Traders are assessing signs that US economic activity picked up pace in August, with PMI data from S&P Global showing the strongest growth in manufacturing orders in 18 months.

Oil prices edged lower, with Brent crude last trading at $67.64 per barrel, after strong gains on Thursday as Russia and Ukraine blamed each other for a stalled peace process, and US data showed signs of strong demand in the top oil consuming nation. Elsewhere, Gold was slightly lower, with spot bullion flat at $3335.41 per troy ounce.

"We maintain a positive view on the market but advise traders to focus on selective opportunities arising from rotational buying across sectors, said Ajit Mishra, SVP of Research at Religare Broking. "At the same time, it is prudent to avoid aggressive positioning in the broader indices and adopt a stock-specific approach in the near term."

Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 1,246.51 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 2,546.27 crore on a net-net basis.
 

Nifty & Sensex outlook

Talking about crucial levels, the zone of 25,180-25,200 will act as an important hurdle for the index, said Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities. "Any sustainable move above the level of 25,200 will lead to a sharp upside rally up to the 25,350 level. While on the downside, the zone of 24960-24940 will act as immediate support," he said.

The larger market trend is upward, but for day traders, buying on intraday corrections and selling on rallies would be the ideal strategy. On the downside, 25,000/81,700 and 24,950/81,500 would act as key support zones, while 25,150/82,300 and 25,250/82,500 could be crucial resistance levels, said Shrikant Chouhan, Head of Equity Research at Kotak Securities. "However, below 24,950/81,500, the sentiment could change. traders may prefer to exit long positions on breaching these levels," it said.
 

Nifty Bank outlook

Nifty Bank opened flat and consolidated within a narrow band of 55,830–55,700 for most of the session. A breakout from this range, supported by price action, will likely determine the next directional move, said Amruta Shinde, Technical & Derivative Analyst at Choice Broking. "Key supports are placed at 55,600 and 55,450, while resistance lies in the 56,000–56,200 zone. A convincing breakout above this range could trigger a rally toward the psychological 56,600 level," he said.

The short-term trend remains neutral, with Nifty Bank capped below the super-trend resistance, which coincides with the 50 per cent Fibonacci retracement. On the downside, 55,480 is providing a cushion, but a close below this level could trigger renewed weakness, said Om Mehra, Technical Research Analyst, SAMCO Securities. "A breakout above 56,020–56,100 would be required to confirm a meaningful continuation of the rebound. It is in a consolidation phase, where the upside may remain limited," he said.