GIFT Nifty futures down 150 points; markets likely to open in red amid global cues

The Indian equity market is set for a weak start on Monday, with GIFT Nifty futures indicating a gap-down opening. The index traded 153.50 points or 0.66 per cent lower at 22,978.50, signalling bearish sentiment as traders brace for a volatile session.

Nifty outlook: Support at 22,975 critical

The near-term trend for the Nifty remains bearish, with immediate support at 22,975. A breach of this level could see the index testing the 22,800 zone. On the upside, any rally towards 23,350-23,400 could present sell-on-rise opportunities, especially with the India VIX rising by 0.3 per cent to 16.74, reflecting heightened market nervousness.

Wall Street woes weigh on sentiment

U.S. stocks ended lower on Friday as mixed economic data and tepid earnings dampened investor mood. Key indices such as the S&P 500 slipped 0.5 per cent, with traders exercising caution ahead of a critical Federal Reserve meeting later this week.

Asian markets trade mixed

Asian equities showed mixed performance in early trading. While Japan's Topix gained one per cent, Hang Seng futures rose modestly by 0.2 per cent. On the flip side, S&P/ASX 200 futures were down 0.1 per cent. Cautious optimism remains as global markets digest geopolitical and economic uncertainties.

Commodities: Gold and oil slip

Gold prices edged lower as the U.S. dollar strengthened, with traders awaiting more cues from the Federal Reserve’s upcoming rate decision. Oil prices also declined by over one per cent after calls for OPEC to curb pricing amid increased U.S. output measures.

F&O ban: Nine stocks restricted

Securities like Indiamart, PNB, and Manappuram are among nine stocks under the F&O ban today after surpassing 95 per cent of the market-wide position limit.

FII/DII data: Contrasting trends

Foreign portfolio investors (FPIs) offloaded equities worth Rs 2,758 crore on Friday, continuing their selling spree, while domestic institutional investors (DIIs) purchased Rs 2,402 crore worth of shares, offering some support to the markets.

Rupee movement

The rupee appreciated by 22 paise to close at Rs 86.22 per dollar on Friday, buoyed by a softer dollar index, but global headwinds could keep currency traders on edge this week.

With the Union Budget around the corner and a special trading session scheduled on February 1, markets are expected to remain volatile.