GIFT Nifty futures signal a muted start; global cues in focus

Domestic markets extended their winning streak into the third session on Tuesday, driven by a surge of 181 points in Nifty, as optimism around government spending and expectations of favourable RBI monetary policy changes buoyed sentiment. Analysts suggest this momentum could be sustained in the near term, provided global cues remain supportive.

Pre-market setup

GIFT Nifty signals subdued opening
GIFT Nifty, which replaced SGX Nifty, traded 27.50 points lower at 24,506, hinting at a cautious start for Dalal Street on Wednesday.

Technical Outlook
As long as Nifty stays above 24,400, bulls may attempt to test 24,600-24,700 levels. However, a dip below 24,400 could invite corrections toward 24,150.

Volatility index
India VIX, a gauge of market sentiment, dropped 2.23 per cent to close at 14.37, reflecting declining market fears.

Global market snapshot

US markets
The Nasdaq and S&P 500 closed slightly higher, driven by gains in tech stocks, while the Dow fell marginally.

• Dow: -0.17%

• S&P 500: +0.05%

• Nasdaq: +0.40%

Asian markets
Asian indices traded lower as geopolitical developments in South Korea rattled markets. Hang Seng futures dipped 0.1 percent, and Australia’s S&P/ASX 200 dropped 0.4 percent.

Currency watch
The rupee recovered slightly from its record low, gaining four paise to close at 84.68 against the US dollar, supported by positive equity trends.

Key stocks in focus

F&O ban list

• RBL Bank

• Granules

• Manappuram

Stocks in this list have crossed 95 per cent of their market-wide position limit.

Institutional flows

Foreign investors turned net buyers, pumping Rs 3,664 crore into the markets on Monday, while domestic investors offloaded Rs 251 crore worth of shares.

Markets today will likely hinge on global cues and updates on monetary policy, setting the stage for cautious trading.