Stock market today: Gift Nifty hints at new highs; levels for Nifty, Sensex & Nifty Bank

Indian benchmark stock indices are poised to open higher and hit record highs on Thursday, extending a rally on growing expectations of US and domestic interest rate cuts next month. Lower US interest rates make emerging markets more attractive for foreign investors, besides boosting the world's largest economy and driving demand for sectors.

Nifty futures on the NSE International Exchange traded 52.30points, or 0.20 per cent, up at 26,433.50, hinting at a positive start for the domestic market on Thursday. Asian stocks rose on Thursday on growing expectations of an interest rate cut from the Federal Reserve. Nikkei and KOSPI were up a per cent each, while Hang Seng added nearly a third of the per cent.

The market backdrop remains favourable, driven by a healthier Q3 demand setup and expectations of capex pick up along with potential RBI and FED rate cut, which could help market cross its all time high, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

Wall Street extended its rally on Wednesday as revived tech strength and the increasing probability of a December interest rate cut from the US Fed. The Dow Jones Industrial Average rose 314.67 points, or 0.67 per cent, to 47,427.12, the S&P 500 gained 46.73 points, or 0.69 per cent, to 6,812.61 and the Nasdaq Composite jumped 189.10 points, or 0.82 per cent, to 23,214.69.

The dollar index was little changed at 99.523, after dropping 0.28 per cent on the previous day. Bitcoin was back above $90,000 on Thursday, on track to snap a four-week losing streak with a nearly 3 per cent gain. Gold was flat at $4,164.81 per ounce, after rising 0.8 per cent in the previous session.

Oil prices fell on Thursday on expectations of a Ukraine‑Russia ceasefire which could pave the way for the unwinding of Western sanctions against Russian supply, though trading was set to remain thin due to the US Thanksgiving holiday. Brent crude futures shed 0.3 per cent to $62.92 a barrel, while US West Texas Intermediate crude futures dropped 0.4 per cent to $58.44 a barrel.

"The rally was supported by a mix of domestic and global cues. With all key sectors contributing to the move, we advise focusing on stock selection with favourable risk–reward setups, while maintaining a preference for large-cap and large mid-cap names," said Ajit Mishra, SVP of Research at Religare Broking.

Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 4,778.03 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 6,247.93 crore on a net-net basis.
 

Nifty50 & Sensex outlook

Traders are advised to maintain a buy-on-dips approach and avoid contra short trades. In this context, 26,100–26,000 remains the immediate support zone, while a stronger base has shifted towards 25,850, said Rajesh Bhosale, Equity Technical Analyst at Angel One. "On the upside, the all-time high around 26,300 appears imminent, while a reciprocal retracement projection places 26,500 as the next potential upside target."

For traders, 26,000/85,000 and 26,100/85,300 would act as key support zones. As long as the market is trading above these levels, the bullish formation is likely to continue, said Shrikant Chouhan, Head of Equity Research at Kotak Securities. "On the higher side, 26,350–26,400/86,000-86,200 would act as immediate resistance levels for the bulls. However, below 26,000/85,000, the uptrend would become vulnerable."
 

Nifty Bank outlook

Looking at levels, the zone of 59,700–59,800 zone is likely to act as an important resistance zone for the Nifty Bank. Any sustained move above 59,800 could potentially take the price higher towards 60,200, followed by 60,500, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. "On the downside, the support has shifted higher in the zone of 59,200-59,100."

Nifty Bank formed a big bullish candle on the daily charts, indicating strength. As long as the index holds above 59,400, the current rally could extend toward the 60,000, said Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C Mehta Investment Interrmediates. "Thus, short term traders are advised to follow a buy-on-dips strategy in the short term."