Indian equity benchmark indices are set for a flat open on Thursday as investors weigh the boost from lower oil prices and the US Federal Reserve's decision to hold rates steady ​against signs that it could still raise borrowing costs later this year. Higher US rates typically reduce the relative appeal of emerging markets such as India, keeping ​risk appetite in check.

Indian equities are expected to continue their gradual up move as geopolitical concerns ease and expectations build around a potential agreement to end the West Asia conflict, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. "The sharp decline in crude oil prices has improved sentiment, reducing concerns around inflation and external sector pressures."

GIFT Nifty, Asian markets & US stocks
GIFT Nifty Futures on the NSE International Exchange were 31 points, or 0.13 per cent, up at 24,063, hinting at a muted start for the domestic market on Thursday. Asian stocks were steady and oil prices dipped on ​Thursday as investors assessed progress toward ending the war in the Middle East. Nikkei gained nearly 2 per cent, while KOSPI was up 1 per cent. Hang Seng edged lower.

The S&P 500 and Nasdaq closed lower on Wednesday, as traders bet that the ​Federal Reserve's next move would be a rate hike after new Fed Chair Kevin Warsh highlighted the need to tame inflation. The Dow Jones Industrial Average fell 0.98 per cent to 51,492.55 after two straight sessions of record-high closing levels. The S&P 500 lost 1.21 per cent to ​7,420.10 and the Nasdaq Composite shed 1.34 per cent to 26,021.66.

Crude, US dollar, gold & more
Oil prices fell, with US crude dipping 1.25 per cent ​to $75.83 a barrel and Brent crude down 1.4 per cent to $78.41 per barrel. The dollar index fell 0.03 per cent to 100.32. The yield on benchmark 10-year Treasury notes rose to 4.471 per cent. Spot ​gold traded at $4,309.75 per ounce. In cryptocurrencies, bitcoin gained 0.16 per cent to $64,464.75.  

The continued easing in crude oil prices and expectations of a status quo from the US Federal Reserve in its upcoming policy meeting supported overall risk sentiment, Ajit Mishra, SVP of Research at Religare Broking. "We continue to favour a stock-specific approach, focusing on relative outperformers while maintaining disciplined risk management and booking profits on rallies due to anticipated event-specific volatility."

FII-DII flows
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 101.59 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 1,561.40 crore on a net-net basis.

Nifty50 & Sensex outlook
The market is holding an uptrend continuation formation on daily and intraday charts, which is largely positive. The short-term market outlook remains positive, and for trend-following traders, 24,000/77,000 would act as a key support level, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

"Above this, the market could rally to 24,200-24,300/77,500-77,800. On the flip side, if the market falls below 24,000/77,000, we could see an intraday correction. Below this level, the market might retest the levels of 23,900-23,850/76,700-76,500," he added.

Sensex formed a bullish candle with a higher high and higher low formation, indicating continued buying interest after the recent breakout, said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking. "It remained above its key short-term moving averages and sustained above the breakout zone, suggesting that the prevailing uptrend remains intact."

The Nifty remained volatile and the broader trend remained positive, with the index sustaining above its 50 EMA. 24,000 is expected to act as immediate support on the downside, said Rupak De, Senior Technical Analyst at LKP Securities. "A breach below this level could trigger a correction towards 23,800. Conversely, a decisive move above 24,100 may pave the way for a rally towards 24,300 and higher. Additionally, the weekly BSE options expiry is likely to add to market volatility."

Nifty Bank outlook
Nifty Bank witnessed profit booking that pared its gains. It formed a small-bodied candle with wicks on either side indicating indecision on the daily charts. However, the broader trend remains firmly bullish as the index continues to trade above its key short- and long-term moving averages, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

"Rising green histogram bars on the MACD indicate strengthening bullish momentum. The immediate resistance for Bank Nifty is placed in the 57,900-58,000 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 58,400, followed by 58,800 in the short term. On the downside, the immediate support for Bank Nifty is placed in the 57,100-57,000 zone," he added.

Nifty Bank formed a bullish candlestick pattern which continues to consolidate within Monday’s price range signaling consolidation with stock specific action. It is witnessing consolidation on expected lines in the last 3 sessions amid stock specific action. The 20 days EMA has generated a bullish crossover above its 50 days EMA thus supports the positive bias, said Bajaj Broking Research.

"Nifty Bank is headed towards 58,300 and 59,000 levels in the coming weeks being the measuring implication of the recent four-week range breakout (52,700-55,500). It sustaining above 55,500-56,000, will keep the short-term bias positive and any dips should be viewed as buying opportunities. Only a decisive breach below the 55,500-support level would negate the positive outlook," it said.