GIFT Nifty down 40 points; markets to remain cautious ahead of Fed decision

GIFT Nifty signals a muted start as global cues turn cautious ahead of key central bank rate decisions. Nifty faces resistance near 24,800; support remains firm at 24,500-24,550 levels.

Pre-market setup

• GIFT Nifty: On the NSE IX, GIFT Nifty traded down 38 points at 24,668.50, hinting at a subdued start for Dalal Street.
• Technical outlook: Nifty’s short-term target is placed at 25,125, with immediate support in the 24,500-24,550 range. Analysts suggest buying opportunities on dips towards the support zone.
• India VIX: The volatility index surged 7.55 per cent to 14.04, reflecting increased market uncertainty.

Global markets

• U.S. stocks: The Nasdaq surged to a record high (+1.24%) on Monday, while the S&P 500 gained 0.38 per cent. The Dow, however, declined 0.25 per cent as investors awaited the Fed's final policy announcement for the year.
• Asian markets: Equities in Asia traded higher, with Japan’s Topix and Australia’s S&P/ASX 200 rising 0.5 per cent each. Hang Seng futures fell 0.3 per cent.

Key updates

• Dollar & Gold: The dollar held near its recent highs, while gold prices steadied ahead of the Fed meeting, where clarity on 2025’s interest rate path is expected.
• Rupee: The rupee hit an all-time low, closing at 84.91, down 11 paise against the U.S. dollar.

Stocks under F&O ban
Granules, Manappuram, Nalco, SAIL, RBL Bank, and Hindustan Copper remain in the ban list after breaching 95 per cent of the market-wide position limit.

FII/DII action

• FIIs turned net sellers, offloading Rs 278 crore worth of shares on Monday.
• DIIs also sold equities worth Rs 234 crore.
• Net short positions of FIIs increased sharply to Rs 75,038 crore from Rs 60,551 crore on Friday.

Outlook
With global investors eyeing the Fed decision and Nifty battling resistance, market sentiment remains cautious. Analysts advise staying alert to opportunities near key support levels while monitoring global developments.