Opening Bell: Sensex, Nifty set to open higher; Hyundai Motor, BHEL, Emami, Delhivery, Jubilant Pharmova shares in focus

On the last trading day of the week, Indian equity market is poised to open higher, undermining mixed cues from global peers, amid optimism over India-U.S. trade deal. At 8:25 AM, Gift Nifty index was 107 points, or 0.43%, higher at 25,187, indicating a positive start for the BSE Sensex and NSE Nifty.

On the global front, Asian markets traded lower after Japan's GDP contracted for the first time in a year in the March quarter, while the Wall Street ended on a subdued note overnight amid the mixed retail sales and inflation data.

Back home, shares of Hyundai Motor India, Bharat Heavy Electricals, Emami, Delhivery, and Jubilant Pharmova will be in focus as they will announce their Q4 results today. Traders will also react to earnings reports of Patanjali Foods, Godrej Ind, JSW Energy, NCC, Crompton Greaves, PB Fintech, Abbott India, and GR Infraprojects.

On Thursday, the domestic bourses ended on a strong note in the previous session after retail inflation hit multi-year low, raising hopes for further rate cuts in the coming RBI MPC meeting. The ease in geo-political tensions and ongoing trade talks between India and the United States also lifted sentiments. Speaking at a business gathering in Qatar, U.S. President Donald Trump claimed that India has proposed “zero tariffs” on U.S. goods as part of the new trade agreement with Washington. 

The BSE Sensex closed 1,200 points, or 1.48%, higher at 82,530.74, and the Nifty50 ended above the 25,000 mark at 25,062.10, up by 395.20 points, or 1.6%. The fear index (India VIX), which gauges market volatility, dropped further by 1.93% to 16.89 points, indicating improving overall market sentiments.

U.S. market ends mixed; Dow rises, Nasdaq ends 6-day win streak

In the overnight trade, Wall Street settled on a mixed note, with the S&P 500 and the Dow Jones Industrial Average ending higher, while Nasdaq Composite snapped its six-session gaining streak. At the close, the S&P 500 was up 0.4%, the Dow Jones climbed 0.6%, and the Nasdaq Composite declined 0.2%.

The market sentiment was dented by lower-than-expected earnings of Walmart, while investors also digested retail sales and inflation data. While retail sales declined sharply in April, wholesale inflation unexpectedly slowed last month, giving different indications of the health of the world’s largest economy.

Asian stocks slide as U.S.-China trade euphoria fades

Asian equities continued to consolidate for the second straight session on Friday as traders booked some profit after a four-day rally. The recent U.S.-China tariff truce optimism also faded, while mixed trends at Wall Street overnight also weighed on investor sentiments.

The Nikkei 225 index was down 0.3% after Japan's economy shrank for the first time in a year at a faster pace than expected. Real gross domestic product (GDP) contracted an annualised rate of 0.7% in March quarter.

Hong Kong’s Hang Seng was the worst performer in the region, falling over 1%, while China’s Shanghai Composite dropped 0.7%. Among others, Singapore’s Straits Times and Indonesia’s Jakarta Composite were down by 0.2% each. On the other hand, South Korea’s Kospi was marginally up, while Taiwan Weighted index gained over 0.6%. Meanwhile, Australia’s ASX 200 ended 0.6% higher.

Market outlook

The overall market's outlook remains positive, but buying on intraday corrections and selling on rallies would be the ideal strategy for day traders, says Shrikant Chouhan, Head – Equity Research, Kotak Securities. “On the downside, 24,900/82200 and 24,750/81800 would act as key support zones for Nifty and Sensex, while 25,210–25,300/82800-83000 could serve as key resistance levels for the bulls. However, below 24,750/81800, the uptrend would become vulnerable,” he said.

Ajit Mishra – SVP, Research, Religare Broking said that a decisive breakout above the 25,200 level could potentially take the Nifty towards the 25,400+ zone. He recommended a “buy on dips” strategy, with a strong emphasis on selective stock picking, especially in light of overbought conditions in certain segments.

"The recent consolidation breakout, along with a move above the swing high, has increased the probability of the Nifty reaching 25,690 in the short term. Immediate resistance is placed at 25,360, above which further upside potential may be unlocked. On the downside, 24,400 is expected to act as strong support in the short to medium term,” said Rupak De, Senior Technical Analyst at LKP Securities.

A decisive break below this level could cause the ongoing rally to lose momentum. Until then, a buy-on-dips strategy is likely to remain effective, he said.