Indian shares are set to open higher on Friday, tracking gains in other Asian markets, as oil prices fell after US President Donald Trump cancelled plans ‌to strike Iran citing progress in talks. Easing geopolitical tensions and lower energy prices are a major positives for importing nations like India, which is among world's top crude importer.

Indian equities are expected to remain volatile in the near term, with sentiment likely to be weighed down by escalating geopolitical tensions in West Asia, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. "Markets are closely watching for signs of resolution, which remains the key monitorable in the near term." 

GIFT Nifty, Asian markets & US stocks
GIFT Nifty Futures on the NSE International Exchange were 252 points, or 1.09 per cent, up at 23,452, hinting at a positive start for the domestic market on Friday. Asian stocks joined a global rally on Friday on hopes a Middle East peace deal. KOSPI soared nearly 8 per cent, while Nikkei jumped nearly 3 per cent. Hang Seng was up a per cent in the early trade.

The US stock indices ended sharply higher on Thursday after US President Donald Trump canceled planned strikes against Iran. The Dow Jones Industrial Average rose 929.97 points, or 1.86 per cent, to 50,848.75, the S&P 500 gained 127.31 points, or 1.75 per cent, to 7,394.30 and the Nasdaq Composite soared 640.16 points, or 2.54 per cent, to 25,809.66.

Crude, US dollar, gold & more
Oil prices slumped to two-month lows amid the US-Iran truce before trimming some of the losses. US West Texas Intermediate crude futures were down 1.2 per cent to $86.69 a barrel. Brent dropped 1.1 per cent at $89.40 per barrel. Precious metals resumed declines on Friday. Spot gold slipped 0.6 per cent to $4,189 an ounce. The dollar stabilised after overnight losses.

Investor sentiment remained fragile amid renewed escalation in the Middle East following fresh developments involving the US and Iran, said Ajit Mishra, SVP of Research at Religare Broking. ""Profit booking in the broader indices, which had been outperforming earlier, is adding to participants’ concerns. We continue to advocate a cautious approach with a focus on stock-specific opportunities."

FII-DII flows
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 1,987.09 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 4,224.51 crore on a net-net basis.

Nifty50 & Sensex outlook
Technically, the market bounced back sharply after a gap-down open. It witnessed profit booking at higher levels. A small candle on daily charts and non-directional intraday activity indicate indecisiveness between the bulls and the bears, said Shrikant Chouhan, Head of Equity Research at Kotak Securities

"For day traders, 23,300/74,200 would act as an immediate resistance zone. Above this level, the market could move towards 23,400-23,450/74,500-74,700. On the flip side, below 23,100/73,500, selling pressure is likely to accelerate. Below that, the chances of hitting 23,000-22,900/73,200-73,000 would increase," he added.

Immediate support for the Sensex is placed near 72,900–73,000. A decisive break down below these levels could accelerate corrective weakness. On the upside, immediate resistance is visible near 74,600–74,700, while a sustained move above 74,800 may trigger fresh buying interest and improve the short-term outlook, said Aakash Shah, Research Analyst at Choice Equity Broking.

The Nifty is holding the support zone of 23000 - 23100 despite negative global cues. In terms of levels for Nifty 23550 - 23600 is the immediate hurdle zone while 23000 - 23100 continues to act as a support zone. Breach of the range on either side shall result into a trending move in that particular direction, said Jatin Gedia, VP of Technical Research at Teji Mandi Investment.

Nifty Bank outlook
Nifty Bank formed a small bullish candle with a higher high and a lower low signaling consolidation amid stock specific action. The index continues to sustain above its 20-day EMA and the recent trendline breakout area, suggesting that the broader trend remains constructive, said Bajaj Broking Research.

"A decisive move above this level would confirm renewed buying momentum and open the path towards 56,500 levels in the coming weeks. Failure to do so will lead to some consolidation in the range of 53,800-55,600. On the downside, immediate support is positioned at 54,000–53,800 being the low of the current week and key retracement of the recent pullback," it added.

Nifty Bank continued its positive momentum, sustaining above its key 20-day and 50-day EMA levels, indicating relative strength, said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.

"Going ahead, the 55500–55600 zone is likely to act as an immediate resistance for the index. A sustained breakout above 55600 could trigger a sharp upside rally towards 56200, followed by 56600 in the short term. On the downside, the 54800–54700 zone is expected to provide immediate support and act as a cushion against any corrective move," he said,