GIFT Nifty futures dip marginally; markets set for a cautious start

Indian markets concluded Tuesday's session on a flat note, with analysts suggesting a "buy on dips" strategy amid range-bound movements. While midcap and smallcap stocks exhibited strength, broader indices maintained a consolidation phase.

GIFT Nifty outlook

GIFT Nifty on the NSE IX traded lower by eight points or 0.03 per cent at 24,677.50, indicating a muted opening for domestic indices on Wednesday.

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Technical view

The Nifty is expected to remain sideways unless it breaks decisively above or below its current range. A drop below 24,470 may trigger a correction of 200–250 points, while resistance remains at 24,700–24,750.

India VIX

India VIX, a key fear gauge, fell 2.34 per cent to settle at 13.78, reflecting lower volatility expectations in the near term.

Global market cues

• US markets: Wall Street ended lower on Tuesday, with technology stocks dragging indices down ahead of crucial inflation data.

  • Dow Jones: down 0.35 percent

  • S&P 500: down 0.30 percent

  • Nasdaq: down 0.25 percent

Asian markets: Asian shares were mixed as traders anticipated US inflation data, which could influence the Federal Reserve’s rate decisions.

• Japan’s Topix: flat

• Australia’s S&P/ASX 200: down 0.3 per cent

• Korea’s KOSPI: up

Stocks in F&O ban today

The following stocks are under the F&O ban due to breaching 95 per cent of market-wide position limits:

1. Granules

2. Manappuram Finance

3. Metropolis Healthcare

4. PVR Inox

5. RBL Bank

FII/DII activity

Foreign institutional investors (FIIs) were net buyers of Rs 1,286 crore on Tuesday, while domestic institutional investors (DIIs) also purchased equities worth Rs 606 crore.

Rupee movement

The Indian rupee closed at 84.85 against the US dollar on Tuesday, a one-paisa gain from the previous session, as expectations grew regarding the Reserve Bank of India's policy under its new leadership.