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Buy or sell stocks: Global markets are trading with a positive bias, led by firm gains in US equities after lower-than-expected November consumer price inflation data reinforced expectations of further interest-rate cuts by the US Federal Reserve, triggering a shift toward a risk-on environment. Sentiment was further boosted by better-than-expected earnings from chipmaker Micron Technology and a strong quarterly revenue outlook, which reignited optimism around the AI and technology space. As a result, the Nasdaq surged 1.38%, while the S&P 500 and Dow Jones advanced 0.79% and 0.14%, respectively. Stability in US bond yields following the softer inflation print, along with a sharp decline in the US VIX, points to easing risk aversion and improving investor confidence.

Asian markets are also trading higher, with the Nikkei 225 and Kospi inching up in early trade, albeit with cautious optimism ahead of the Bank of Japan’s monetary policy decision. With volatility contained and global liquidity conditions supportive, the overall backdrop remains constructive, likely lending a mildly positive undertone to Indian markets at the open. However, persistent weakness in the rupee near record lows, along with delays in finalising the India–US trade negotiations, remains a key near-term concern for domestic markets, keeping investor sentiment guarded and capping meaningful upside in Indian equities.

Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is cautious as the Nifty 50 index pared its gains after bouncing back after testing its 50-DEMA support placed at 25,750. The key benchmark index has closed around 25,800 and is facing a hurdle at 26,000 on the upper side. A positive trend can be expected only when the 50-stock index closes above 26,000 on a closing basis. If the index breaches below 25,750 decisively, it may attempt to test the 25,450 to 25,350 band.

Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, "The Nifty 50 index after a flat opening recovered significantly to touch the 25,900 zone but thereafter fizzled out to erase the gains and closed on a flat note near the 25,800 zone with bias precariously placed having the important and crucial support near the 50-DEMA level at 25,750 zone which needs to be sustained to maintain the overall trend intact. The index, indicating a lower top formation on the daily chart resisting near the 26,050 zone, has slipped down and once again would need a pullback to close above the 26,000 level to regain strength and establish conviction to anticipate a further upward move in the coming days."

On the outlook of the Bank Nifty index, Parekh said, "The Bank Nifty index, amid some volatility ended on a flat note with the index making a high near the 59,200 zone during the intraday session but losing steam in the second half to slip down to close near the 58,900 level with bias overall maintained intact but with a cautious approach as of now. As mentioned earlier, the index has the crucial support zone near the 58,700 zone and with a tight range-bound movement visible for quite some time, would need a decisive breach above the 59,600 level to establish conviction and thereafter, anticipate further upward moves in the coming days."

Parekh stated that immediate support for the Nifty 50 index is located at 25,700. The Bank Nifty is expected to have a daily range of 58,500 to 59,600.

Regarding stocks to buy today, Vaishali Parekh recommended three buy-or-sell stocks for intraday trading on Friday: Ashok Leyland, Sandur Manganese and Iron Ores, and Hindustan Copper.

1] Ashok Leyland: Buy at ₹171.55, Target ₹180, Stop Loss ₹168;

2] Sandur Manganese and Iron Ores: Buy at ₹211, Target ₹223, Stop Loss ₹207; and

3] Hindustan Copper: Buy at ₹387.45, Target ₹412, Stop Loss ₹379.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

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