Indian equity markets are poised for a positive start on Friday, indicated by a significant rise in GIFT Nifty futures. Trading on the NSE International Exchange, GIFT Nifty futures climbed 148.50 points, or 0.61 percent, to 24,413.50, signaling a bullish sentiment for domestic indices.
Global Factors Fueling Optimism
The positive undertone stems from a confluence of global factors. US stocks closed mixed on Thursday ahead of a long holiday weekend, following a softer-than-expected US jobs report which alleviated concerns about aggressive interest rate hikes. This development, coupled with declining crude oil prices and improving global risk sentiment, is providing a tailwind for Indian equity markets.
Continued progress in US-Iran negotiations has also contributed to easing worries over energy supply disruptions, further supporting risk assets. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that central banks in both India and the US remain focused on inflation containment, which supports overall market sentiment, though he cautioned about the impact of AI and geopolitical overhangs on discretionary spending.
Asian Markets and Commodities React
Asian markets opened mixed on Friday, with South Korea's KOSPI and Hong Kong's Hang Seng gaining nearly 2 percent each, while Japan's Nikkei saw a modest rise of half a percent. In commodities, Brent crude futures slipped 0.4 percent to $71.49, and gold was up 0.1 percent at $4,125.49. The US dollar index remained steady at 100.98, while Bitcoin experienced a slight dip of 0.4 percent to $61,306.45.
Ajit Mishra, SVP of Research at Religare Broking, highlighted the positive impact of declining Brent crude prices and a rebound in the IT sector on market sentiment, recommending a 'buy-on-dips' approach with disciplined risk management.
FII and DII Activity
Provisional data from NSE revealed that Foreign Portfolio Investors (FPIs) were net sellers of domestic stocks on Thursday, offloading shares worth Rs 311.82 crore. Conversely, Domestic Institutional Investors (DIIs) showed strong buying interest, acquiring Indian equities to the tune of Rs 1,784.40 crore on a net basis.
Technical Outlook for Nifty50, Sensex, and Nifty Bank
Nifty50 Outlook
Technically, the Nifty50 maintained positive momentum after a gap-up open, forming a bullish candle on daily charts. Shrikant Chouhan, Head of Equity Research at Kotak Securities, identified 24,075/77,200 as key support zones. Above these levels, the market could target 24,250-24,375. Rupak De, Senior Technical Analyst at LKP Securities, noted Nifty breaking out of consolidation, suggesting a potential advance towards 24,300–24,500, with immediate support at 24,000.
Sensex Outlook
The Sensex also formed a strong bullish candlestick, indicating sustained buying interest. Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, stated that 76,900–77,000 would act as an immediate support zone, with positive momentum likely to continue as long as the index sustains above this level. The immediate resistance zone is identified between 78,000–78,200.
Nifty Bank Outlook
The Nifty Bank formed a bearish candle with shadows, indicating some indecisiveness, yet the broader trend remains positive, trading comfortably above key moving averages. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, pointed to the 58,400-58,500 zone as an immediate hurdle. A decisive move above 58,500 could trigger a rally towards 59,100 and 59,600. The 57,600-57,500 zone is expected to provide crucial support, maintaining the bullish undertone.
Nilesh Jain, VP and Head of Technical and Derivative Research at Centrum Finverse, highlighted that India VIX declining 8 percent to close near 12 reflects easing volatility, further supporting the bullish sentiment across the market.