GIFT Nifty futures up 40 points; markets likely to open higher on positive global cues
GIFT Nifty futures gain 40 points, hinting at a positive market open. Global rebounds and easing inflation boost sentiment, though caution prevails with weak technical trends and upcoming inflation data.
GIFT Nifty futures on the NSE IX traded 41 points higher, or 0.18 per cent, at 23,306, signalling a positive opening for Indian equities. This uptick aligns with a rebound in global markets, supported by easing domestic inflation and optimism around the ongoing Q3 earnings season.
Technical outlook: Weak trend persists
Despite the positive opening signals, Nifty's daily chart continues to show a negative pattern of lower tops and bottoms, indicating a weak underlying trend. Analysts warn that the current bounce could lead to another lower top formation in the short term.
India VIX eases
The India VIX, a key measure of market volatility, dropped by 3.3 per cent to settle at 15.47 levels on Tuesday, reflecting reduced fear among traders.
Global markets offer mixed cues
Asian shares opened higher, with Japan’s Topix rising 0.8 per cent and Australia’s S&P/ASX 200 up 0.3 per cent. However, Hong Kong’s Hang Seng futures fell slightly by 0.2 per cent. In the U.S., the S&P 500 edged higher, while the Nasdaq dipped amid concerns over upcoming inflation data and its implications on Federal Reserve policy.
Stocks in F&O ban today
Six stocks, including Angel One, RBL Bank, Hindustan Copper, LT Finance, Bandhan Bank, and Aarti Industries, remain in the F&O ban list after crossing 95 per cent of the market-wide position limit.
Rupee rebounds slightly
After hitting an all-time low on Monday, the rupee recovered 8 paise to close at 86.62 against the US dollar on Tuesday. This rebound was driven by a pause in the dollar’s rally, providing some relief to currency markets.
FII and DII activity
Foreign institutional investors (FIIs) remained net sellers, offloading Rs 8,132 crore worth of equities, while domestic institutional investors (DIIs) offset some of the selling with net purchases of Rs 7,901 crore.
Outlook
With GIFT Nifty signalling a positive start, domestic markets may open higher, driven by global momentum and easing inflation. However, traders should remain cautious, as technical indicators suggest continued volatility ahead.
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