Stock market news: Gift Nifty up 75 points; key levels for Nifty, Sensex & Nifty Bank

Indian equity benchmark indices are likely to open higher on Wednesday, supported by strong earnings, while foreign fund buying is also expected to lift sentiment. Investors are focused on corporate earnings, with the December-quarter reporting season nearing its end, while details of the US-India trade deal are also awaited.

Nifty futures on the NSE International Exchange traded 74.90 points, or 0.29 per cent, up at 26,060.50, hinting at a positive start for the domestic market on Wednesday. Trading was thinned in Asia with Japan markets closed for a holiday. Hang Seng & KOSPI rose one-third to two-third of a per cent.

Markets are likely to maintain a gradual upward bias, with stock-specific action expected to intensify as the Q3 earnings season enters its final leg. US export-oriented companies, following the recent trade deal, along with metal stocks, are likely to remain in focus, Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

The S&P 500 and the Nasdaq closed lower on Tuesday while the Dow edged up to its third record close in a row. The Dow Jones Industrial Average rose 52.27 points, or 0.10 per cent, to 50,188.14, after hitting an intraday record high. The S&P 500 lost 23.01 points, or 0.33 per cent, to 6,941.81 and the Nasdaq Composite fell 136.20 points, or 0.59 per cent, to 23,102.47.

Gold and silver prices rose on Wednesday as US Treasury bond yields fell after data showed December retail sales growth stalled, signalling a softening economy ahead of key jobs data. Spot gold edged 0.3 per cent higher to $5,038.73 per ounce, while spot silver was up 1 per cent at $81.49 an ounce, after falling over 3 per cent in the previous session.

Brent crude oil futures steadied at $68.80 a barrel with markets hanging on US-Iran diplomacy. Bitcoin has struggled to progress beyond the $70,000 barrier and was pinned around $69,000 on Wednesday. In currency markets, a resurgent yen and a rising yuan have the dollar on the back foot. Against a basket of currencies, the dollar was down 0.12 per cent at 96.80.

Sentiment remained supported by positive trends in global markets, along with signs of foreign institutional inflows. Select corporate earnings and stock-specific developments further added to the constructive undertone, said Ajit Mishra, SVP of Research at Religare Broking. “Participants should therefore stay selective and align positions with sectors showing rotational strength.”

Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 69.45 crore on Tuesday. On the other hand, domestic institutional investors (DIIs) turned buyer of Indian equities to the tune of Rs 1,174.21 crore on a net-net basis.
 

Nifty50 & Sensex outlook

The market has formed a Doji candle pattern on the daily charts, indicating indecisiveness between the bulls and bears. The short-term market outlook remains positive, but there could be a quick intraday dip if it slips below 25,900/84,100. Below this, the market could retest the levels of 50 day SMA or 25,800-25,750/83,700-83500, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

“On the higher side, 26,000/84,500 would be the immediate resistance zone for the bulls. A successful breakout above 26,000/84,500 could push the market up to 26,100-26,150/84,800-85,000,” he added.

The momentum indicator is in a bullish crossover and trending higher, indicating improving momentum. Nifty50 is sustaining above its critical moving averages on the daily timeframe, said Rupak De, Senior Technical Analyst at LKP Securities. “In the short term, the trend is expected to remain sideways to positive, with support placed at 25,790. On the higher end, resistance is seen at 26,000–26,300.”

Nifty is reflecting profit-taking at higher levels and the absence of aggressive buying interest. Technically, the index continues to face resistance in the 26,050–26,100 zone, while immediate support is placed at 25,750–25,800, said Hitesh Tailor, Research Analyst at Choice Equity Broking.
 

Nifty Bank outlook

Bank Nifty formed a small bearish candle which remained contained inside previous session price range signaling consolidation amid stock specific action after previous 2 sessions strong up move. Bias remains positive and dips should be used as buying opportunity, with short term support seen at 59500-59200, said Bajaj Broking.

“Volatility is likely to remain elevated amid uncertain global cues. Key short-term support is placed in the 58,500–58,000 zone being the confluence of the 100 days EMA and the bullish gap area of last Tuesday,” it added.

The zone of 60,900-61,000 will act as an immediate hurdle for Nifty Bank, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. “Any sustainable move above 61,000 will lead to a further upside rally upto the 61,500, followed by 62,000 in the short-term. On the downside, the zone of 60,100-60,000 will act as crucial support for it,” he said.