Indian equity benchmark indices are set for a higher open on Thursday, largely influenced by a significant uptick in GIFT Nifty futures. The Nifty futures on the NSE International Exchange climbed 134.50 points, or 0.57 percent, reaching 23,803, signaling a positive start for domestic trading.
Global Cues and Market Sentiment
The positive sentiment stems from a rally on Wall Street on Wednesday, where technology and chip stocks rebounded strongly. This recovery was observed ahead of key quarterly results from Nvidia. Additionally, a sharp drop in oil prices contributed to investor optimism, as signs emerged of potential progress in US-Iran negotiations to resolve Middle East conflicts. US President Donald Trump indicated that talks with Iran were in their final stages.
Asian markets also showed strong performance, with South Korea's KOSPI surging over 6 percent and Japan's Nikkei climbing nearly 4 percent. Hong Kong's Hang Seng index rose by almost a percent, further bolstering global market confidence.
Expert Analysis and Key Levels
Despite the positive open, experts advise caution. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, highlighted an unfavorable macro backdrop characterized by a weakening rupee, elevated Brent crude prices, and high US bond yields. These factors are tightening financial conditions and could weigh on overall market sentiment in the near term.
Nifty50 Outlook
According to Shrikant Chouhan, Head Equity Research at Kotak Securities, the Nifty50 found support near 23,400 and bounced back. The short-term market texture remains non-directional. Key resistance zones for bulls are identified between 23,800-23,850. A sustained move above 23,850 could push the market towards 23,950-24,000. Conversely, a failure to hold 23,400 might lead to a decline towards 23,250-23,200.
Sensex Outlook
Hitesh Tailor, Technical Research Analyst at Choice Broking, noted that the Sensex continues to exhibit range-bound movement. Support is established around the 74,100–74,400 zone, while immediate resistance lies near 76,000–76,200. This pattern suggests consolidation after recent sharp swings, with traders advised to await a decisive breakout for clear directional cues.
Bank Nifty Outlook
Bank Nifty formed a bullish candlestick pattern, indicating buying interest at lower levels. Vatsal Bhuva, Technical Analyst at LKP Securities, projects a potential recovery towards the 54,200 mark. Immediate support for Bank Nifty is at 53,000, with positional support at 52,800. Resistance is observed within the 54,200–54,400 zone.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that despite a strong intraday move, Bank Nifty trades below its key moving averages, with the RSI indicating a lack of strong directional momentum. Immediate support is in the 53,100-53,000 range. Bajaj Broking emphasized that Bank Nifty holding above 52,700-52,400 could lead to a pullback towards 54,000 and 54,700.
FII-DII Flows and Volatility
Provisional data from NSE revealed that Foreign Portfolio Investors (FPIs) were net sellers of domestic stocks on Wednesday, offloading shares worth Rs 1,597.35 crore. In contrast, Domestic Institutional Investors (DIIs) were net buyers, injecting Rs 1,968.35 crore into Indian equities. The India VIX, a measure of market volatility, cooled off by 2 percent to 18.30 levels, which Nilesh Jain, VP-Head of Technical and Derivative research at Centrum Finverse, believes could provide further comfort to the bulls.