D-St set for a cautious opening as GIFT Nifty signals muted start

On Monday, benchmark Nifty opened higher on firm Asian cues, but slipped below the 25,000 mark in early trade amid selling in IT heavyweights, before recovering in the closing session to settle marginally higher at 25,045. Analysts say Indian equities are likely to consolidate in the near term as investors book profits after the sharp rally of over 10% in seven sessions. The direction on Wednesday will largely be driven by global cues. However, several tailwinds, including a strong earnings outlook, lower crude oil prices and the prospect of slower AI-related capex globally, continue to support the market.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a muted start

GIFT Nifty on the NSE IX traded higher by 8 points, or 0.03 per cent, at 25,336.50, signaling that Dalal Street was headed for a muted start on Wednesday.

Tech View: Although the index is slightly overbought and a healthy retracement cannot be ruled out after the recent rally, there are currently no significant signs of weakness. Traders holding positions from lower levels can trail their stop-loss to 24,800. On the upside, 25,200 remains the immediate resistance, while 24,750–24,800 is the crucial support zone.

India VIX: India VIX, which is a measure of the fear in the markets, fell 1.01% to settle at 17.42 levels.

Asian shares rise

Asian stocks rose in early trading after better-than-expected earnings from CoreWeave Inc. eased concerns over the outlook for the artificial intelligence trade, helping counter a Wall Street selloff fueled by hotter-than-expected US inflation.

• S&P 500 futures rose 0.2% as of 9:15 a.m. Tokyo time
• Hang Seng futures fell 1%
• Japan’s Topix rose 0.7%
• Australia’s S&P/ASX 200 was little changed
• Euro Stoxx 50 futures rose 0.5%

US stocks end lower

US stocks closed lower on Tuesday, as a hotter-than-expected inflation reading hardened expectations for a rate hike from the Federal Reserve next month and fueled concerns the central bank may be more aggressive in raising rates.

Gold edges higher

Gold prices edged higher in early Asian trade on Wednesday but remained close to a one-week low as stronger-than-expected US inflation data reinforced expectations of a Federal Reserve interest rate increase next month, pressuring bullion.

Dollar gains

The dollar held gains near a two-week high in early Asian trade on Wednesday as a hotter-than-expected inflation report and hawkish comments from Federal Reserve officials fuelled bets the central bank will raise rates next month.

Oil prices rise

Oil prices rose on Wednesday after falling to two-month lows in the previous session, as the market swung between hopes for a de-escalation in the Iran war and concerns about ongoing attacks on shipping in the Strait of Hormuz.

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

Stocks in F&O ban today

Kaynes

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: AI stocks: Are the days of easy money over? Aswath Damodaran warns investors of a new market reality ahead of Anthropic IPO

FII/DII action

Foreign portfolio investors net bought shares worth Rs 7,212 crore on Monday. DIIs, meanwhile, were net sellers at Rs 7,172 crore.

Rupee

The rupee appreciated 21 paise to 93.77 against the US dollar on Monday, boosted by easing crude oil prices, stronger foreign fund inflows, and optimism regarding de-escalation in West Asia.

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