D-Street poised for a positive start as GIFT Nifty trades firmly higher

Benchmark indices extended their gains and closed above key psychological levels, supported by continued buying interest in large-cap stocks. However, Brent crude oil prices remained elevated, keeping macroeconomic concerns and investor caution intact. Analysts say the immediate short-term bias remains corrective below the 23,175–23,250 resistance zone, marked by the confluence of last month’s high and the 50-day EMA, a sustained breakout above this zone would signal a pause in the downtrend.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a positive start

GIFT Nifty on the NSE IX traded higher by 195 points, or 0.84 per cent, at 23,281, signaling that Dalal Street was headed for a positive start on Monday.

Tech View: The RSI has also witnessed a bullish crossover, supporting positive short-term momentum. As long as Nifty sustains above its 20-DMA and the crucial support zone of 22,800, the short-term outlook remains positive, with resistance at 23,175.

India VIX: India VIX, which is a measure of the fear in the markets, rose 1.2% to settle at 15.30 levels.

Asian shares slip

Asian share markets slipped on Monday as worries about the sustainability of the AI investment boom loomed over the tech sector, while the high price of oil limited the safe-haven appeal of sovereign bonds.

• S&P 500 futures rose 0.3% as of 9:57 a.m. Tokyo time
• Hang Seng futures rose 0.2%
• Nikkei 225 futures (OSE) fell 0.6%
• Japan’s Topix fell 0.6%
• Australia’s S&P/ASX 200 fell 0.4%
• Euro Stoxx 50 futures were little changed

Oil prices fall

Oil prices slipped more than 1% on Monday after Iranian and Qatari officials held a third straight day of talks aimed at pushing for a deal to end the US-Israeli war on Iran.

Dollar rangebound

The dollar and other major currencies were in a holding pattern on Monday as investors turned their attention to this week's US midterm elections, which could shift the balance of power in Congress and control over the federal purse strings.

Gold prices up

Gold prices ticked up in early Asian trading on Monday but hovered near a one-year low, as persistent inflation concerns reinforced expectations that the Federal Reserve could raise interest rates later this year, weighing on bullion's appeal.

Read more: Ahead of Market: 10 things that will decide stock market action on Monday

Stocks in F&O ban today

1) Kaynes

2) SAIL

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Read more: Can Nifty, Sensex extend gains after rallying up to 2% last week? 4 factors to watch on Monday

FII/DII action

Foreign portfolio investors net bought shares worth Rs 3,598 crore on Friday. DIIs, meanwhile, were net sellers at Rs 871 crore.

Rupee

The rupee appreciated 50 paise to close at 94.76 against the US dollar on Friday, supported by a positive trend in domestic markets and a soft US dollar.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here