GIFT Nifty futures drop 60 pts; markets to open on a cautious note

GIFT Nifty traded down 62.5 points at 23,944.50, indicating a negative opening for Indian equities. Market sentiment remains fragile after the Federal Reserve’s hawkish outlook on interest rates, which could weigh on global risk appetite.

Technical outlook
The Nifty index has immediate support at 23,850. A breach below this level may trigger further correction. On the upside, resistance is placed at 24,200, suggesting limited room for recovery unless strong buying emerges in key sectors.

India VIX and F&O ban stocks
India VIX rose by 0.96 per cent, closing at 14.51, signalling elevated market volatility. Stocks under the F&O ban include Granules, Manappuram, PVR Inox, SAIL, Bandhan Bank, Hindustan Copper, and NMDC, as they crossed 95 per cent of the market-wide position limit.

Global cues remain mixed
U.S. markets ended nearly flat after the Federal Reserve forecasted fewer rate cuts in 2025 and hinted at persistent inflation risks. The Dow rose 0.04 per cent, while the S&P and Nasdaq slipped marginally by 0.09 per cent and 0.10 per cent, respectively.

Asian markets mirrored this cautious sentiment. Nikkei 225 and Hang Seng futures fell 0.2 per cent and 0.3 per cent, while Australia’s S&P/ASX 200 dropped 0.4 per cent in early trade.

Rupee under pressure
The rupee hit a new record low, closing at 85.08 against the US dollar, reflecting global dollar strength and foreign fund outflows.

FII/DII activity
Foreign institutional investors sold Rs 4,224 crore worth of equities on Thursday, marking net selling. Domestic institutional investors followed suit, offloading Rs 3,943 crore.

Key focus areas
Traders will monitor the Personal Consumption Expenditure (PCE) data from the U.S., which could provide further direction for global markets. Gold prices have weakened this week, reflecting investor caution amid rising dollar strength.