First Nifty Expiry of the Year: GIFT Nifty points to upbeat opening as benchmarks test new peaks

Sensex, Nifty Today: GIFT Nifty futures hinted at a positive start for Indian equity benchmarks on Tuesday amid positive global cues.

GIFT Nifty today

At 08:20 am, GIFT Nifty futures were trading at 26,386, up 66 points or 0.25 per cent, indicating a favourable opening for Dalal Street.

Nifty holds firm near record levels

Nifty recorded a fresh intraday life high of 26,373 for the second consecutive session. The index saw a pause in its three-day rally but marked a higher high and higher low for the fourth straight day. Nifty has now stayed above its 50-day moving average of 25,960 for 66 sessions, strengthening this level as a key support.

Bank Nifty, Bankex extend record run

Bank Nifty hit a new intraday life high of 60,437 for the second day in a row. While the four-day rally paused, the index continued to form a higher high and higher low for the third session. BSE Bankex also scaled a fresh intraday life high for the second consecutive day, reflecting sustained strength in banking stocks.

Midcap and smallcap momentum stays strong

The Nifty Midcap Select index remained strong for the fourth straight day and formed a higher high and higher low for the third session. It closed above its 50 DMA of 13,758 for the third day at 13,968. The index touched a three-week high and is now just about 1 per cent away from its previous life high of 14,118 recorded on December 1, 2024.

The Midcap 100 index also hit a new intraday record for the second consecutive day.

The Smallcap index extended gains for the second day and climbed to a one-month high, forming a higher high and higher low. However, it still trades around 10 per cent below its December 12, 2024 life high of 19,716.

Sectoral trends: IT weak, cyclicals strong

Metal, auto and PSU bank indices touched fresh intraday life highs, showing continued rotation into cyclical stocks. The IT index, however, slipped to a one-month low. The Realty index climbed to a one-month high and crossed its 50 DMA, 100 DMA and 100 EMA in a single session on Monday.

Volatility rises

India VIX jumped 6 per cent for the second straight session. It touched a two-week high intraday and settled at 10.22, indicating a rise in near-term market volatility.

FII, DII activity mixed

FIIs marginally increased their index futures long positions from 11.41 per cent to 11.50 per cent. They sold shares worth Rs 36 crore in the cash market on Monday. Overall, FIIs recorded net selling of Rs 2,202 crore across cash, index futures and stock futures.
Domestic institutional investors continued their strong buying streak for the 90th consecutive session, purchasing shares worth Rs 1,764 crore.

Dow scales fresh peak; global cues turn supportive

US markets remained strong overnight. The Dow Jones hit a life high of 49,210 for the first time this year, while the Dow and S&P 500 extended gains for the second session. Nasdaq snapped a five-day losing streak.

The rupee weakened for the fourth consecutive day, closing 8 paise lower at 90.28 against the dollar. The dollar index snapped a six-day rally and ended near 98. US bond yields also broke a four-day rise, closing at 4.17 per cent.

Commodities and crypto in focus

Bitcoin rose for the fifth straight day. Silver surged sharply, jumping 8 per cent or Rs 9,839 in the previous session. Gold is trading Rs 2,345 below its December 26 life high of Rs 1,40,465, while silver remains Rs 8,019 below its December 29 life high of Rs 2,54,174.

Copper crossed the $13,000 mark for the first time, hitting a new life high. Aluminium touched its highest level since April 2022, zinc since January 2023, and nickel since October 2024.