GIFT Nifty futures up 150 points; the markets are likely to be more open
GIFT Nifty futures on NSE IX were trading higher by 152.50 points, or 0.66 percent, at 23,282 as of this morning, reflecting a strong start for Indian stocks. The attack follows a mixed session in Asian markets, where Australian shares rose 0.5 percent, while Japanese shares traded lower after reopening after the holiday. S&P 500 futures also firmed 0.2 percent, giving hope to global figures.
Technical outlook: Weakness continues in Nifty
The fundamental trend of Nifty remains weak, the index is approaching its next support zone of 22,800–22,700 levels. According to Nagaraj Shetti of HDFC Securities, any pullback to 23,350 could be seen as a selling opportunity, highlighting caution among traders. The India VIX, a gauge of market volatility, jumped 7.2 percent to settle at 16, indicating heightened panic.
The list of F&O restrictions is growing
Six stocks, including Manappuram Finance, RBL Bank, Hindustan Copper, LT Finance, Bandhan Bank, and Aarti Industries, are under F&O ban today. This indicates that these securities have breached 95 percent of the market’s overall limit, which limits derivatives trading.
FIIs are always wholesalers; the rupee is at a historic low
Foreign institutional investors (FIIs) sold Indian equities worth Rs 4,893 crore on Monday, while domestic institutional investors (DIIs) completed some selling by buying Rs 8,066 crore. The rupee saw its sharpest one-day fall in two years, down 58 paise to close at a record low of 86.62 against the US dollar. A stronger greenback and higher crude oil prices weighed on the currency.
Important events to watch
With a calendar full of Union budget, Q3 earnings, and RBI policy review, analysts expect short-term volatility. Additionally, global factors, including US monetary policy and national developments, remain important to market direction.
Outlook
A strong start for GIFT Nifty points to a positive opening on Dalal Street. However, traders should remain vigilant given the weak technical trend and the uncertainty ahead.
