GIFT Nifty futures down 170 points; markets likely to open on a weak note

The domestic equity market is poised for a sluggish start to the week, as GIFT Nifty futures fell 171.50 points or 0.73 per cent to 23,334.50, signalling a negative opening for Dalal Street. This comes amid global uncertainties and macroeconomic concerns.

Global cues weigh on sentiment

Asian markets traded lower on Monday, pressured by Friday’s upbeat US non-farm payroll data, which stoked inflation worries and reinforced expectations of a cautious Federal Reserve. Japan's Nikkei 225 futures dropped 1.2 per cent, and Hong Kong’s Hang Seng futures fell 0.8 per cent. Meanwhile, Australia’s S&P/ASX 200 slipped 0.8 percent.

In the US, the S&P 500 erased its 2025 gains after robust jobs data dampened hopes for early rate cuts. The dollar index strengthened further, weighing on emerging market currencies.

Crude oil climbs higher

Crude oil prices surged to their highest levels in more than three months, driven by fresh US sanctions on Russian oil exports, potentially tightening supplies to major importers like China and India.

Domestic market indicators

The India VIX, a measure of market volatility, rose 1.76 per cent to 14.92 on Friday, indicating heightened investor caution. Foreign institutional investors (FIIs) remained net sellers, offloading shares worth Rs 2,254 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 3,962 crore.

Technical outlook

Market analysts expect immediate support at 23,260 for the Nifty, with resistance around 23,700. A decisive break below the support could lead to further downside.

Stocks to watch

Five stocks are in the F&O ban today: Manappuram Finance, RBL Bank, Hindustan Copper, LT Finance, and Bandhan Bank. Securities enter the ban period when they exceed 95 per cent of the market-wide position limit.

Rupee under pressure

The rupee breached the 86-mark against the dollar for the first time, falling by 18 paise on Friday. A stronger dollar and FII outflows contributed to the currency's depreciation.

Investors will closely monitor global trends and economic data for cues, with consolidation likely in the near term.