GIFT Nifty futures down 17 points; markets likely to remain range-bound amid mixed cues

Indian markets are expected to open on a cautious note on Wednesday, tracking global weakness and muted signals from GIFT Nifty futures. Here's a detailed breakdown of the pre-market trends:

GIFT Nifty signals muted opening

GIFT Nifty, the earlier SGX Nifty, traded 17.50 points or 0.08 per cent lower at 23,740.50, hinting at a subdued start for Dalal Street. Investors remain watchful of developments around the HMP Virus and await cues from upcoming Q3 earnings.

Technical outlook: Consolidation likely

Analysts suggest that Nifty is likely to consolidate between 23,500 and 23,900. A breakout on either side will determine the near-term market trajectory. Meanwhile, India VIX, the fear gauge, dropped 6.33 per cent to 14.66, reflecting reduced volatility.

Global markets: Weak sentiment persists

US markets ended lower on Tuesday as strong economic data reignited inflation concerns, raising fears of prolonged monetary tightening by the Federal Reserve. The Dow dipped 0.42 per cent, the S&P 500 lost 1.11 per cent, and the Nasdaq declined 1.89 per cent.
Asian markets mirrored the negative trend, with Japan’s Topix falling 0.5 per cent and Australia’s S&P/ASX 200 remaining flat.

F&O ban and FII/DII action

Stocks under the F&O ban today include Manappuram Finance, RBL Bank, Bandhan Bank, and Hindustan Copper. Foreign portfolio investors (FPIs) were net sellers of Rs 1,491 crore on Tuesday, while domestic institutional investors (DIIs) net bought Rs 1,615 crore worth of shares.

Rupee under pressure

The Indian rupee closed 6 paise lower at 85.74 against the US dollar on Tuesday, weighed by higher crude prices and persistent foreign fund outflows.

Outlook: Cautious optimism

With global cues clouded by inflation worries and domestic markets navigating mixed trends, traders should brace for a choppy session.