GIFT Nifty futures slide 110 pts; cautious start for Dalal Street ahead?

As GIFT Nifty futures drop 110 points or 0.46 per cent to 24,186 on the NSE IX, a tepid opening looms for Indian markets on Friday. Analysts advise investors to monitor global cues and pre-quarterly updates for directional clarity.

State of global markets

US markets wrapped Thursday on a choppy note. The Dow fell 0.36 per cent, the S&P 500 slipped 0.22 per cent, and the Nasdaq edged lower by 0.16 per cent. Asian equities, however, showed resilience, with Australia’s S&P/ASX 200 rising 0.3 per cent and Euro Stoxx 50 futures climbing 1 per cent.

Key technical levels to watch

The Nifty’s short-term uptrend remains intact, supported by a strong 2 per cent rally on Thursday. Analysts project the index to face resistance near 24,400 levels, with immediate support around 23,900, according to Nagaraj Shetti of HDFC Securities.

Volatility eases

India VIX dropped 5.13 per cent to settle at 13.74 on Thursday, reflecting reduced market fear.

Stocks under focus

• In F&O ban: Manappuram and RBL Bank remain under the ban period as their market-wide position limit exceeded 95 per cent.
• FIIs and DIIs activity: Foreign portfolio investors net bought shares worth Rs 1,506 crore, while domestic investors purchased equities worth Rs 22 crore.

Commodity and currency check

Gold prices gained for a second session, bolstered by safe-haven demand amid global uncertainties. Meanwhile, the rupee slipped by nine paise, closing at 85.73 against the US dollar.

Outlook ahead

With global markets reopening post-holidays, Q3 earnings updates and economic data will shape investor sentiment. A cautious approach is advised, especially amid external volatility and domestic cues from corporate earnings season.

Investors should brace for near-term volatility and look for opportunities during dips, especially in sectors showing resilience in the current market setup.