D-Street set to make a negative start today? GIFT Nifty futures down 80 points

Domestic equity markets ended Thursday near the day’s lows, breaking a 14-day winning streak for broader markets. The GIFT Nifty (previously SGX Nifty) signals a weak start to Friday’s trading, down 85 points or 0.34 per cent at 24,561, as of early morning trade. The market is expected to react to easing inflation data, which stood at 5.48 per cent.

US inflation and Fed expectations weigh on sentiment
Wall Street closed lower on Thursday amid concerns over higher-than-expected producer prices in November. The Dow Jones Industrial Average slipped 0.53 per cent, the S&P 500 dropped 0.54 per cent, and the Nasdaq declined 0.66 per cent. Initial jobless claims climbed unexpectedly, adding to worries about the labour market's strength ahead of next week’s Federal Reserve meeting.

Asian markets track Wall Street losses
Asian equities also witnessed declines, with Japan’s Topix falling 0.7 per cent, Australia’s S&P/ASX 200 dropping 0.6 per cent, and Hang Seng futures signalling a 1.2 per cent fall. The cautious mood reflects global concerns around inflation and monetary tightening.

Technical outlook: Range-bound movement persists
Nifty remains in a consolidation phase, with support at 24,470 and resistance around 24,650-24,700 levels. A decisive move below the support could trigger further corrections. India VIX, a measure of market volatility, eased by 0.58 per cent to 13.19, indicating subdued investor fear.

Stocks in F&O ban
Six stocks are under the F&O ban today: Granules, Manappuram, Metropolis, PVR Inox, RBL Bank, and Hindustan Copper. These securities have surpassed 95 per cent of the market-wide position limit.

Rupee at record low
The Indian rupee depreciated by five paise to settle at 84.88 against the US dollar on Thursday, pressured by weak domestic equity markets, foreign fund outflows, and higher crude oil prices.

FII/DII activity
Foreign portfolio investors were net sellers on Thursday, offloading shares worth Rs 3,560 crore. Domestic institutional investors provided some relief by purchasing equities worth Rs 2,646 crore.

Trading strategy
Traders should remain cautious, focusing on sectoral opportunities, particularly in banking and IT, while monitoring global cues closely.