GIFT Nifty plans at muted start; Asian markets are always at a high level

The domestic stock market is set to open cautiously as the Gift Nifty shows a lower start, reflecting continued uncertainty around the world. On Tuesday, the Nifty futures on the Gift Nifty platform rose 15 points to 24,428, suggesting a negative opening for Indian stocks.

Technical view: Support at 23,870, resistance near 24,500

Market sentiment improved slightly after the Nifty managed to hold above the key 23,870 mark in the previous session. Analysts suggest that the index may prove a positive trend if it remains above this level. However, immediate resistance is in the 24,400-24,500 range.

Volatility is rising

India’s VIX, a volatility gauge, rose 1.9 percent on Monday to settle at 14.70, reflecting growing uncertainty amid a mixed global outlook.

The revival of world markets

Asian markets showed signs of optimism, with Australia’s S&P/ASX 200 up 0.6 percent in early trade. Meanwhile, S&P 500 futures and Hang Seng futures were flat, indicating caution among investors.

Forex and rupee issues

The rupee closed at a record low of 84.72 against the US dollar, down 12 times on weak domestic macroeconomic data and dollar strength. The euro, yen, and yuan were relatively stable against the greenback.

FII/DII action

Foreign portfolio investors (FPIs) turned into real sellers on Monday, pulling out equities worth Rs 238 crore. In contrast, domestic institutional investors (DIIs) infused Rs 3,589 crore, reflecting confidence in domestic markets despite global headwinds.

Stocks on F&O ban

RBL Bank remains on the F&O ban list today, as its security breached the 95 percent market position threshold.

Important takeaways

While the domestic market was closed on Monday, broader concerns about slowing GDP growth persisted. Analysts predict a phase of consolidation in Indian markets amid mixed signals globally. A break above the 24,500 resistance may trigger fresh buying, while a fall below 23,870 may attract selling pressure.