Markets set for a positive opening as GIFT Nifty hints at gains; RBI policy decision in focus

Indian stock markets are poised for a positive opening on Friday, supported by cues from GIFT Nifty, which traded higher by 39.50 points or 0.16 per cent at 24,804.50. However, volatility is expected to dominate as investors await the Reserve Bank of India’s (RBI) monetary policy announcement later today.

Key indicators to watch

Global market cues:

U.S. markets ended lower on Thursday as investors digested upcoming jobs data, which could influence the Federal Reserve's rate decisions. The Dow Jones dropped 0.6 per cent, while the S&P 500 and Nasdaq shed 0.2 per cent each. Asian markets mirrored this sentiment, with Japan’s Topix and Australia’s ASX 200 dipping marginally.

Domestic indices performance:

On Thursday, the S&P BSE Sensex surged 809.53 points to close at 81,765.86, while the Nifty 50 gained 240.95 points, ending at 24,708.40. Analysts suggest that the bullish trend may persist if the Nifty remains above the critical 24,300 level, with an upside potential toward 25,000.

India VIX:

The market's fear gauge rose slightly by 0.54 per cent to 14.53, reflecting cautious sentiment amid heightened uncertainty.

F&O ban:

Granules and Manappuram are in the Futures and Options (F&O) ban today as their market-wide position limits have exceeded 95 per cent.

Currency update:

Rupee staged a modest recovery from its all-time low, closing 3 paise higher at 84.72 against the U.S. dollar on Thursday.

FII/DII flows:

Foreign institutional investors (FIIs) were net buyers on Thursday, infusing Rs 8,539 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 2,304 crore.

Technical view:

Market experts recommend a buy-on-dips approach, with a focus on maintaining the 24,300 support level.

Outlook

With GIFT Nifty indicating a positive opening and RBI policy decisions on the horizon, market participants should brace for a potentially volatile yet upward-trending session.