Indian stock markets are expected to open on a strong note this Friday, tracking significant gains in Asian markets and a positive close on Wall Street. The GIFT Nifty Futures on the NSE International Exchange surged by 252 points, or 1.09 per cent, reaching 23,452, signaling a robust start for domestic indices.
Global Factors Boosting Sentiment
The optimistic outlook follows a sharp rally in US stock indices on Thursday, after US President Donald Trump reportedly called off planned strikes against Iran, citing progress in ongoing talks. This de-escalation of geopolitical tensions, coupled with a notable drop in oil prices, is seen as a major positive for crude-importing nations like India.
Asian markets mirrored this global rally. South Korea's KOSPI soared almost 8 per cent, while Japan's Nikkei jumped nearly 3 per cent. Hong Kong's Hang Seng also recorded a one per cent gain in early trade.
Oil Prices Decline, Dollar Stabilizes
Oil prices slumped to two-month lows amidst the US-Iran truce before recovering some ground. US West Texas Intermediate crude futures fell 1.2 per cent to $86.69 a barrel, while Brent crude dropped 1.1 per cent to $89.40 per barrel. Precious metals resumed declines, with spot gold slipping 0.6 per cent to $4,189 an ounce, as the US dollar stabilized after overnight losses.
Expert Outlook and Key Levels
Despite the positive start, some analysts advise caution. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that Indian equities might remain volatile in the near term due to lingering geopolitical concerns in West Asia. Ajit Mishra, SVP of Research at Religare Broking, highlighted fragile investor sentiment and profit booking in broader indices as additional concerns, advocating for a cautious, stock-specific approach.
Nifty50 and Sensex Outlook
Technically, the market saw a sharp rebound after a gap-down open but faced profit booking at higher levels, indicating indecisiveness. Shrikant Chouhan, Head of Equity Research at Kotak Securities, identified 23,300/74,200 as an immediate resistance zone for day traders. A move above this could push Nifty towards 23,400-23,450 and Sensex towards 74,500-74,700. Conversely, a fall below 23,100/73,500 could accelerate selling pressure, potentially leading to 23,000-22,900/73,200-73,000 levels.
Aakash Shah, Research Analyst at Choice Equity Broking, pinpointed immediate Sensex support near 72,900–73,000, with resistance around 74,600–74,700. For Nifty, Jatin Gedia, VP of Technical Research at Teji Mandi Investment, sees 23,550-23,600 as the immediate hurdle and 23,000-23,100 as the crucial support zone.
Nifty Bank Analysis
The Nifty Bank index formed a small bullish candle, signaling consolidation. Bajaj Broking Research suggests a constructive broader trend, with a decisive move above current levels potentially opening the path towards 56,500. Immediate support is seen at 54,000–53,800. Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, identifies 55,500–55,600 as immediate resistance, with a sustained breakout potentially triggering a rally towards 56,200, then 56,600. Support is expected around 54,800–54,700.
FII-DII Flows
Provisional data from NSE showed Foreign Portfolio Investors (FPIs) as net sellers of domestic stocks, offloading shares worth Rs 1,987.09 crore on Thursday. However, Domestic Institutional Investors (DIIs) were net buyers, injecting Rs 4,224.51 crore into Indian equities.