GIFT Nifty futures down 10 points; markets are set for a muted start

Indian markets are poised for a muted opening on Thursday as GIFT Nifty futures traded 12.5 points lower at 23,802.50, signaling consolidation near crucial support levels. Analysts advise caution amid continued selling by foreign investors and mixed global cues.

Key technical levels

For the monthly expiry, the 23,900–24,000 zone remains a critical resistance area. Breaking above this range could reignite positive momentum. On the downside, the 23,600–23,500 range offers immediate support, aligning with the lower end of last week’s bearish candle.

Market sentiment

• India VIX: The fear gauge dropped 2.5 percent to settle at 13.18, indicating lower volatility.
• FII/DII action: FIIs sold shares worth Rs 2,454 crore, while DIIs purchased Rs 2,819 crore on Tuesday.

Global cues

• US markets: Wall Street extended gains with megacap stocks driving benchmarks higher in a shortened session.
• Asian markets: Equities in Japan and South Korea advanced, while other regional markets were closed for holidays.
• Gold & rupee: Gold inched higher in thin holiday trade, while the rupee depreciated by 4 paise to a fresh all-time low of 85.15 against the US dollar.

Stocks to watch

• F&O ban: RBL Bank remains under the F&O ban as it crossed 95 percent of its market-wide position limit.
• Sectors in focus: Defensive sectors like pharma and FMCG show resilience, while broader markets face pressure.