Stock market today: Gift Nifty up 38 pts; key levels to watch for Nifty, Sensex & Nifty Bank

Indian benchmark indices are set to open on a positive note on Thursday as geopolitical concerns subsided ahead of June series expiry, which may add to the volatility at Dalal Street. Global cues remained mixed as the US dollar was near its 3-year lows, while crude prices stabilized.

Nifty futures on the NSE International Exchange traded 38.30 points, or 0.15 per cent, lower at 25,290.50, hinting at a positive start for the domestic market on Thursday. Asian stocks stuttered on Thursday. Nikkei surged more than a per cent, while KOSPI crashed more than 2 per cent. Hang Seng was down half a per cent.

Indian equity markets have staged a recovery, supported by easing geopolitical tensions in the Middle East and a moderation in crude oil prices, said Vinod Nair, Head of Research at Geojit Investments. FIIs continue to withdraw capital but positive global cues are supporting the momentum. US tariffs present a potential headwind but near-term market sentiment remains broadly positive.”

US stocks took a breather on Wednesday, pausing a two-day rally as the tenuous Israel-Iran cease fire continued to hold. The Dow Jones Industrial Average fell 106.59 points, or 0.25 per cent, to 42,982.43, the S&P 500 ended flat at 6,092.16 and the Nasdaq Composite added 61.02 points, or 0.31 per cent, to 19,973.55.

The dollar index wallowed at its lowest level since March 2022 as it sank up to 97.491. The index has slid 10 per cent this year as investors, worried by Trump’s tariffs and their own US growth, look for alternatives. Spot gold added half a per cent fetch $3,337.17 an ounce.

In commodities, oil prices inched higher to continue recovering after a volatile month so far due to the conflict between longtime rivals Israel and Iran. Brent crude futures rose 0.2 per cent to $67.82 a barrel, while US West Texas Intermediate crude (WTI) gained 0.28 per cent to $65.1.

The recent market resilience despite mixed global cues reflects underlying strength, although heightened volatility continues to keep traders cautious, said  Ajit Mishra, SVP of Research at Religare Broking. “Amidst this backdrop, we maintain our positive outlook and continue to advocate a ‘buy on dips’ approach, with a strong emphasis on stock selection,” he said.

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 2,427.74 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) remained buyers of Indian equities to the tune of Rs 2,372.96 crore on a net-net basis.
 

Nifty & Sensex outlook

For trend-following traders, now, 25,000/82,000 and 25,100/82,300 would act as key support zones. As long as the market is trading above these levels, the bullish sentiment is likely to continue, said Shrikant Chouhan, Head Equity Research, Kotak Securities. On the higher side, 25,300/83,000 would act as an immediate resistance zone for day traders, he adds.

Sentiment continues to improve as buying interest in stocks rises. The ceasefire following the conflict between Israel and Iran has boosted confidence among bullish traders, who are now aiming to take the Nifty towards 25,750, said Rupak De, Senior Technical Analyst at LKP Securities. “Immediate resistance is placed at 25,350; a breakout above this level could extend the rally towards 25,750,” he said.
 

Nifty Bank outlook

Nifty Bank traded in a narrow band but managed to hold above its short-term moving averages. The setup signals steady progress, a stronger directional push is awaited, said Om Mehra, Technical Research Analyst, SAMCO Securities “The immediate hurdle is placed near 57,000, while the support stands at 56,200. A ‘buy on dip’ strategy would be the preferred approach for the next session.”

Bank Nifty formed a doji candle which remained enclosed inside previous session price range signaling consolidation amid stock specific action, said Bajaj Broking. “The index is set to retest the all-time high near 57,050, with potential extension towards the 57,600 marks in the coming weeks. Key structural support is placed at the 54,500–54,000 zone,” it added.