GIFT Nifty futures trade 30 points higher; markets to start on a positive note

The stock markets are poised for a positive yet cautious start as GIFT Nifty (formerly SGX Nifty) indicates a 30-point gain. The index was trading at 24,128, reflecting optimism despite global market mixed cues and foreign investor outflows.

Key technical levels to watch

The Nifty 50 index faces resistance at 24,250, with further upside targets near 24,500 if this level is breached. On the downside, a break below 24,000 could drag the index to 23,700. Analysts view Friday’s pullback of over half a per cent as a temporary pause following a three-day rally.

Global market cues

• Asian markets: Trading mixed; Japan’s Topix rose 0.3 per cent, Australia’s S&P/ASX 200 gained 0.4 per cent, while Euro Stoxx 50 futures slipped 0.9 per cent.

• Wall Street: Ended higher on Friday as expectations of Federal Reserve rate cuts lifted big tech stocks.

• Dollar index: Hovering near a two-year peak as traders eye the U.S. nonfarm payrolls report for rate clues.

Commodity update

Gold prices remained steady, while crude oil showed marginal movement as markets awaited U.S. economic data for further direction.

FII and DII action

Foreign portfolio investors (FPIs) continued their selling spree, offloading shares worth Rs 4,227 crore on Friday. However, domestic institutional investors (DIIs) provided some relief by purchasing Rs 821 crore worth of equities.

Stocks in F&O ban

Manappuram Finance and RBL Bank are under the F&O ban for Monday as their market-wide position limits exceeded 95 per cent.

Rupee outlook

The rupee closed at a record low of 85.79 against the U.S. dollar, down by four paise, pressured by strong demand for dollars and lacklustre equity performance.

Earnings season spotlight

The Q3 earnings season kicks off with TCS on Wednesday. Any signs of improvement in IT sector performance could boost market sentiment and reverse the ongoing trend of FII outflows.

With mixed global cues and technical resistance levels in focus, the markets may witness range-bound movement. Investors will keep a close eye on earnings and U.S. data releases for further clarity.