Indian stock markets are likely to open slightly higher today, supported by mild gains in the GIFT Nifty. However, the overall trend remains cautious, and the market may trade within a narrow range in early hours.
In the short term, the Nifty continues to show some weakness. The key support level to watch is around 25,880. If the index stays above this level, it may move sideways or see a small pullback. But a clear fall below this support could lead to more selling pressure.
Indian markets ended the previous session marginally lower as investors booked profits at higher levels. The BSE Sensex slipped 20.46 points, or 0.02 percent, to close at 84,675.08. The Nifty 50 ended 3.25 points, or 0.01 percent, lower at 25,938.85.
The Nifty opened in the red at 25,940.90 and moved up early in the session to an intraday high of 25,976.75. Selling pressure at higher levels later dragged the index down to an intraday low of 25,878. It finally closed near its opening level.
Among sectors, metal stocks, PSU banks and auto shares ended higher. Realty, IT and FMCG stocks faced noticeable selling pressure.
From a technical point of view, short-term indicators continue to signal weakness. The immediate support is placed at 25,880. A firm break below this level may lead to further downside.
On the upside, resistance is seen near 25,975. The Nifty needs to stay above this level for a meaningful recovery.
Intraday support: 25,880 | 25,820 | 25,750
Intraday resistance: 25,975 | 26,050 | 26,125
Positional support: 25,750 | 25,250
Positional resistance: 26,350 | 27,000
The Bank Nifty closed higher at 59,171.25, gaining 238.90 points, or 0.41 percent, supported by select banking stocks.
Despite the rise, technical indicators still suggest a cautious outlook. Immediate support is placed at 59,000. As long as the index holds above this level, the positive trend may continue. The nearest resistance is seen at 59,150.
Intraday support: 59,000 | 58,850 | 58,700
Intraday resistance: 59,150 | 59,300 | 59,450
Positional support: 58,580 | 57,200
Positional resistance: 60,000 | 61,250
Institutional activity was mixed. Foreign institutional investors were net sellers worth ₹3,844.02 crore, while domestic institutional investors bought shares worth ₹6,159.81 crore. Strong domestic buying is helping limit downside risks in the market.
As of 7:15 am on December 31, the GIFT Nifty was trading at 26,118, up 15 points, indicating a slightly positive start for Indian markets.
US markets:
Wall Street ended lower. The Dow Jones fell 94.87 points to 48,367.06, while the Nasdaq slipped 55.27 points to 23,419.08.
European markets:
European indices closed marginally higher, with the FTSE 100, DAX and CAC 40 ending in positive territory.
Asian markets:
Asian markets opened lower today. Japan’s Nikkei fell 177.50 points to around 50,455, while Hong Kong’s Hang Seng slipped 221.50 points to near 25,663.
Crude oil traded lower near $61.22. Gold slipped slightly to around ₹4,382, while silver also edged lower and traded near ₹75.66.
The dollar index traded slightly higher near 98.26. The rupee weakened marginally against the dollar and was trading around ₹89.81 in early trade.
