Sensex, Nifty set for a strong start as GIFT Nifty surges nearly 2%

Indian markets are set for a positive start on Monday, as GIFT Nifty rose by 468.50 points, or 1.96 per cent, to trade at 24,322 on the NSE IX.

Key drivers for the day

State of global markets

• US Markets: Wall Street closed higher on Friday, supported by robust economic data and optimism surrounding economic resilience.
• Asia: Asian equities traded in the green, with Japan's Topix rising 0.9 per cent and Australia's S&P/ASX 200 up 0.6 per cent.
• Oil prices: Oil remained near two-week highs as geopolitical risks from Russia and Iran stoked supply concerns.
• Dollar: The dollar eased slightly as bond yields softened.

Domestic cues

• Key events to watch: Indian markets may respond to the outcomes of the Maharashtra and Jharkhand elections, along with key macroeconomic releases like GDP data and infrastructure output.
• FII/DII trends: Foreign Institutional Investors (FIIs) were net sellers on Friday, offloading shares worth Rs 1,278 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 1,722 crore.

Technical insights

• Support and resistance: Nifty is expected to find support at 23,630–23,560 levels, with resistance seen at 24,400 and potentially extending towards 24,730, according to Jatin Gedia of Sharekhan.
• India VIX: The volatility index rose slightly to 16.10, reflecting modest caution among traders.

Currency and FII data

The rupee strengthened by nine paise on Friday to close at 84.41 against the US dollar, aided by strong equity performance. Additionally, FII net short positions narrowed from Rs 2.01 lakh crore to Rs 1.54 lakh crore, signalling reduced bearish sentiment.