GIFT Nifty futures up 40 points; markets to start on a positive note

GIFT Nifty futures traded 40 points higher at 23,773, indicating a positive opening for Indian equities. However, short-term market trends suggest a cautious approach amid global uncertainties and mixed technical signals.

Technical outlook on Nifty
The Nifty's short-term trend remains weak, with potential downside supports at 23,460 and 23,260 levels. Resistance is expected around 23,800. Traders are advised to monitor these levels closely for potential reversals.

Global markets offer mixed cues

• US markets: Wall Street closed higher on Monday, supported by gains in semiconductor stocks and optimism over a potential softer tariff stance.
  • Dow Jones: +0.16%
  • S&P 500: +0.70%
  • Nasdaq: +1.24%
• Asian markets: Following the US rally, Asian equities traded positively. Japan, South Korea, and Australia posted gains, while Hang Seng futures hinted at a softer opening.
  • Australia’s S&P/ASX 200: +0.4%
  • Hang Seng futures: -0.4%

India VIX and FII/DII data
India VIX, an indicator of market volatility, eased 1.09 per cent to 13.59, reflecting a slight reduction in fear sentiment. Foreign institutional investors (FIIs) sold shares worth Rs 2,575 crore, while domestic institutional investors (DIIs) bought shares worth Rs 5,749 crore on Monday.

Rupee gains marginally
The rupee recovered from intraday losses, closing 11 paise higher at 85.68 against the US dollar, supported by positive flows and reduced FII short positions.

Stocks in F&O ban
Hindustan Copper, RBL Bank, and Manappuram remain in the F&O ban list as they exceeded 95 percent of the market-wide position limit.

What to expect today
Markets may witness volatility driven by global cues, pre-quarterly updates, and sector-specific actions. With a positive start on the cards, participants should remain cautious, focusing on stock-specific opportunities and technical signals.