GIFT Nifty futures down 50 points; markets to watch key levels

Indian markets are set for a cautious start as GIFT Nifty (formerly SGX Nifty) traded 48 points lower, or 0.20 per cent, at 23,837.50 early on January 2, signalling a weak opening for the benchmark indices. The Nifty 50 had closed at 23,742.90 in the previous session, marking a 98.10-point gain, buoyed by auto and banking stocks.

Global cues remain mixed
Asian markets displayed a mixed performance in early trading. Futures on Shanghai indexes dipped, reflecting concerns about China’s recent economic struggles, while Hang Seng futures rose 0.3 per cent. Meanwhile, the S&P 500 futures shed 0.1 per cent after a year-end sell-off in U.S. markets that erased over $1 trillion in large-cap valuations.

Gold kicked off 2025 on a strong note, with investors seeking clarity on the Federal Reserve’s rate outlook and global trade policies.

Technical view: Key levels to watch
According to technical analysts, Nifty's short-term sentiment remains positive, but the index faces resistance near the 24,000 level. A breakout above this could extend gains to 24,500. On the downside, immediate support lies at 23,550.

FII/DII action
Foreign Institutional Investors (FIIs) began the year as net sellers, offloading shares worth Rs 1,782.71 crore on January 1. Domestic Institutional Investors (DIIs), however, stepped in as net buyers, purchasing equities worth Rs 1,690.37 crore, providing some stability to the market.

Currency watch: Rupee under pressure
The Indian rupee closed at a record low of 85.6450 against the U.S. dollar, continuing its depreciation trend. Analysts expect the rupee to trade within the 85.20–85.80 range in the near term, influenced by dollar demand from importers.

What to expect today
Traders will keep an eye on the Nifty 50's ability to break past resistance levels. Broader sentiment remains cautious, influenced by global market trends, FII activity, and economic data. Stay tuned for sector-specific momentum, particularly in autos and banks.