Indian markets are set for a cautious opening on Thursday, with GIFT Nifty futures trading flat, reflecting mixed global cues. Investors will closely watch global developments, particularly around US tariffs and foreign institutional investor (FII) activity, for further market direction.
Nifty outlook and technical view
Nifty rebounded sharply in the previous session, snapping a 10-day losing streak with a 1.1 per cent gain to close at 22,325. This surge was driven by strength in Asian markets and value buying at lower levels. However, on Wednesday, the index declined 37 points to close at 22,083, forming a small bullish candle on the daily chart. This signals an attempt by bulls to regain control despite the pullback.
India VIX, the volatility index that gauges market fear, eased 1.16 per cent to settle at 13.67, suggesting reduced uncertainty in the market.
F&O ban list
Stocks in the F&O ban period for Thursday include Manappuram Finance. These securities have exceeded 95 per cent of their market-wide position limit, restricting fresh positions until their exposure comes down.
Institutional activity
Foreign institutional investors (FIIs) remained net sellers on Wednesday, offloading shares worth Rs 2,895 crore. However, domestic institutional investors (DIIs) provided buying support, purchasing shares worth Rs 3,371 crore.
Notably, FIIs have reduced their net short positions from Rs 1.87 lakh crore on Tuesday to Rs 1.84 lakh crore on Wednesday, indicating a slight improvement in sentiment.
Rupee and commodities update
The rupee extended its gains for the third straight session, appreciating 13 paise to settle at 87.06 against the US dollar. The strength was driven by a rebound in domestic equities, a weaker dollar, and falling crude oil prices.
Global market cues
Overnight, US markets ended mixed as investors assessed the latest economic data and Federal Reserve signals. Asian markets opened cautiously, tracking Wall Street’s performance. Market participants will monitor developments around US trade policies and global risk sentiment for further cues.
Key levels to watch
- Support for Nifty: 21,950
- Resistance for Nifty: 22,250-22,300
Market sentiment remains cautious, with traders expected to take cues from global developments and institutional activity for further directional movement.
