Muted Opening Expected as GIFT Nifty Shows Cautious Signals

The domestic markets have continued their upward trend, reaching a three-day winning streak on Tuesday. The Nifty index experienced a notable gain of 181 points, driven by positive sentiment surrounding government spending and anticipated supportive adjustments in the Reserve Bank of India's (RBI) monetary policy. This positive momentum is expected to persist in the short term, contingent upon supportive global market cues.

Pre-market Setup

GIFT Nifty Points to a Cautious Start
On Wednesday, the GIFT Nifty, which has taken the place of SGX Nifty, indicated a drop of 27.50 points, bringing the index to 24,506. This suggests a flat and cautious opening for the Indian stock market on Dalal Street.

Technical Outlook
If the Nifty remains above the level of 24,400, there may be attempts to push towards the 24,600-24,700 range. Conversely, any decline below 24,400 could lead to a potential correction towards 24,150.

Volatility Index
The India VIX, which measures market sentiment, has decreased by 2.23 percent to close at 14.37. This decline signifies a reduction in market apprehensions.

Global Market Snapshot

US Markets Overview
In the United States, the Nasdaq and S&P 500 concluded the day slightly higher, propelled by gains in the technology sector, whereas the Dow Jones Industrial Average saw a minor decline.

• Dow: -0.17%

• S&P 500: +0.05%

• Nasdaq: +0.40%

Asian Markets
Asian stocks faced downward pressure, influenced by geopolitical tensions in South Korea. The Hang Seng futures dropped by 0.1 percent, and Australia's S&P/ASX 200 index fell by 0.4 percent.

Currency Movements
The Indian rupee showed a slight recovery from its record low, strengthening by four paise to settle at 84.68 against the US dollar, buoyed by favorable movements in the equity markets.

Key Stocks in Focus

Stocks on the F&O Ban List

• RBL Bank

• Granules

• Manappuram

These stocks have reached over 95 percent of their market-wide position limit, leading to their inclusion in the ban list.

Institutional Flows

On Monday, foreign institutional investors emerged as net buyers, injecting a significant Rs 3,664 crore into the markets, while domestic investors sold Rs 251 crore worth of shares. Today's market movements will likely be influenced by global trends and announcements related to monetary policy, paving the way for cautious trading patterns.

market, opening, GIFT