GIFT Nifty Futures down 42 pts; markets likely to start on a cautious note

The Indian equity market is poised for a likely negative opening on Thursday, as indicated by GIFT Nifty futures trading lower by 42 points or 0.18 per cent at 23,713. Mixed global cues, rising bond yields, and concerns over the Federal Reserve's rate cut trajectory are expected to keep markets volatile.

Technical outlook

A decisive move above 23,800 could trigger an upside bounce, while immediate support lies at 23,496 levels, according to Nagaraj Shetti of HDFC Securities. Markets may remain range-bound unless strong cues emerge to propel a breakout.

India VIX eases

India VIX, the volatility index reflecting market sentiment, fell marginally by 1.33 per cent to settle at 14.46, signalling reduced nervousness.

US market snapshot

US stocks ended mixed on Wednesday as investors balanced upbeat jobs data against concerns of inflation. The Dow and S&P 500 closed higher by 0.16 per cent, while the Nasdaq shed 0.66 per cent.

Asian markets trade weak

Asian equities mirrored Wall Street’s cautious tone. Japan’s Topix fell 0.5 per cent, Australia’s S&P/ASX 200 declined 0.6 per cent, and Hang Seng futures were down 0.2 per cent.

FII/DII activity

Foreign institutional investors (FIIs) continued as net sellers, offloading shares worth Rs 2,575 crore on Wednesday. Domestic institutional investors (DIIs), however, provided support with net purchases of Rs 5,749 crore.

Rupee under pressure

The rupee declined for the second straight session, closing at a record low of 85.87 against the US dollar due to higher crude oil prices and a strong greenback.

Stocks in F&O ban

Manappuram, RBL Bank, Hindustan Copper, LT Finance, and Bandhan Bank are in the F&O ban list for Thursday as they crossed 95 per cent of their market-wide position limits.

What to expect today

Analysts expect range-bound trade with stock-specific movements driven by pre-Q3 business updates and cautious global trends. Traders are advised to focus on risk management and await clarity on broader market trends.