Stock market today: Gift Nifty down 15 pts; check key levels for Nifty, Sensex & Nifty Bank

Indian benchmark indices are set to open flat on Tuesday amid muted global cues. US stocks observed a holiday on Monday, while Asian stocks were mixed in the early trade. Early arrival of Monsoon in India and fiscal consolidation shall be key triggers for the market ahead of last leg Q4 earnings. On the global front, India-US trade deal shall guide the Dalal Street action.

Nifty futures on the NSE International Exchange traded 15.40 points, or 0.06 per cent, lower at 25,020.50, hinting at a muted start for the domestic market on Tuesday. Asian stocks opened mixed on Tuesday. KOSPI dropped half a per cent, while Nikkei fell 0.25 per cent. Hang Seng and ASX 200 were marginally up.

Wall Street observed a holiday on Monday on the account of Memorial Day. The dollar struggled to regain its footing Tuesday as investor concerns over a sweeping tax and spending bill and its implications for the US debt profile continued to undermine sentiment towards US assets.  The dollar index slid 0.1 per cent, down for a third-straight session.

The dollar index has been falling for three consecutive sessions, trading near its one-month low levels which could increase foreign capital inflow in emerging markets, said Siddhartha Khemka, Head - Research at Motilal Oswal Financial Services. "We see Indian equities continuing its gradual up-move on the back of strong domestic macros and supportive global market trends."

Oil prices eased on Tuesday as market participants weighed the possibility of an OPEC+ decision to further increase its crude oil output at a meeting later this week. Brent crude futures shed 12 cents, or 0.19 per cent, to $64.62 a barrel, while US West Texas Intermediate crude was down 15 cents, or 0.24 per cent, at $61.38 a barrel.

The move reaffirms positive outlook on the markets; however, caution persists due to mixed global cues, which continue to limit the pace of the rally, said Ajit Mishra, SVP of Research at Religare Broking. "Traders are advised to remain stock-specific and use any intermediate dips or pauses as opportunities to accumulate quality names across sectors," he said.

Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 135.98 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 1,745.72 crore on a net-net basis.

Looking ahead, key events include the FOMC Meeting Minutes and the US PCE report, which will influence market direction, said Prashanth Tapse, Senior VP (Research) at Mehta Equities. Nifty's intraday bias remains positive, with potential to revisit its all-time high, he said.

Nifty & Sensex outlook

Nifty50 appears to have regained its momentum, decisively breaking out from its consolidation zone of 24,500-25,000, said Nandish Shah, Senior Derivative & Technical Research Analyst, HDFC Securities. "Immediate resistance is now seen at 25,207, a level derived from the 76.4 per cent Fibonacci retracement of the entire fall from 26,277 to 21,743. On the downside, 24,800 could offer immediate support for the Nifty," it said.

A bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate a further uptrend from the current levels, said Shrikant Chouhan, Head Equity Research, Kotak Securities.

"For traders, 24,870/81,900 would act as a key support zone. Above this level, bullish sentiment is likely to continue. On the higher side, 25,150–25,250/82,500-82,800 would act as key resistance areas for traders. However, below 24,870/81,900, the market is likely to retest the levels of 24,740–24,700/81600-81,500" he said.

Nifty Bank outlook

Nifty Bank holds firmly above all key moving averages, indicating short-term support remains intact. The 20-Day simple moving average, currently at 54,980, may act as immediate support in case of any minor pullback, said Om Mehra, Technical Research Analyst, SAMCO Securities. "A sustained close above 55,700 could push the index higher, with scope to retest the all-time high near 56,100."

Nifty Bank on the daily chart formed a green candle with both-side shadow, indicating indecision. On the upside, the index is facing resistance near 56,000–56,100 levels, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates.

"A sustained move above this level could trigger a fresh breakout, which will drive the index towards 57,000–57,500 levels. On the downside, 21-DEMA support is placed near 54,720. As long as the index remains above this level, it is likely to continue its bullish momentum," it said.