Neither side could break the deadlock at Lakeview Park, leaving this CIS Cup third round tie perfectly poised for the second leg at Drumahoe.
It was a game of few clearcut chances but Paul Brown went close for Institute when he hit the upright from a free-kick just before the interval.
Loughgall's Alan Murphy found the net in the 57th minute but his effort was disallowed for pushing in the box.
The game then petered out with few further scoring opportunities.
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