Indian equity benchmarks are positioned for a positive opening today, supported by encouraging signs in trade negotiations and improved global market sentiment. Gift Nifty futures are trading 138 points higher at 25,950 levels, indicating strong momentum ahead of the domestic market opening.
Global Market Performance
Asian markets demonstrated resilience in early trading, with the Hang Seng and KOSPI indices gaining over 1%, while the Nikkei showed marginal upward movement. Overnight trading in American markets presented mixed results, though major indices maintained their recent stability.
Commodity markets reflected optimism as Brent crude climbed to levels not seen since late October, driven by recent sanctions on Russian oil and expectations surrounding the potential resolution of the government shutdown.
Key Support and Resistance Levels
Market analysts have identified crucial trading ranges for the day. The support zones are positioned at 25,625/83,500 and 25,500/83,300, while immediate resistance areas for bullish momentum lie between 25,800-25,900 and 84,000-84,300.
Technical experts recommend level-based trading strategies given the current market volatility. A decisive breach above the resistance zone could trigger enhanced buying momentum and propel indices toward higher targets.
Banking Sector Outlook
Nifty Bank has displayed resilience with strong demand emerging at lower price levels, as evidenced by bullish candlestick formations. Key support for the banking index stands at 57,800, while resistance zones are positioned between 58,400-58,500. A breakout above these levels could extend the recovery toward the 58,800 mark.
Foreign and Domestic Institutional Activity
Foreign Portfolio Investors (FPIs) turned net sellers yesterday, offloading Indian equities worth Rs 803.22 crore. However, Domestic Institutional Investors (DIIs) provided strong market support by purchasing stocks worth Rs 2,188.47 crore on a net basis, offsetting foreign selling pressure.
Trading Strategy
Given the volatile market conditions, investors are advised to adopt a buy-on-dips approach while maintaining strict risk management protocols. The technical structure remains favorable for those looking to capitalize on intraday opportunities within the established support and resistance zones.
