GIFT Nifty futures up 5 points; signals flat start for markets

After a turbulent eight-day losing streak, Indian equities staged a cautious rebound on Monday. The Nifty closed at 22,959.50, up 30.25 points or 0.13 percent, while the Sensex gained 57.65 points to end at 75,996.86. The recovery was driven by heavyweights like HDFC Bank, Reliance Industries, and Bajaj Finance. However, market sentiment remains fragile, with key resistance levels yet to be reclaimed.

Muted start on the cards

GIFT Nifty traded just 2.5 points higher at 23,012.50, signaling a subdued opening for Dalal Street on Tuesday. Analysts suggest that unless Nifty decisively crosses 23,150, traders should adopt a cautious approach. The index is currently trading below key moving averages, reinforcing a bearish undertone. Support remains strong at 22,800.

Global market cues

• Asian markets: Japan’s Topix rose 0.4%, Hang Seng futures gained 0.3%, while Australia’s ASX 200 slipped 0.4%.
• US & European markets: S&P 500 futures edged up 0.1%, and Euro Stoxx 50 advanced 0.6%.
• Gold prices: Bullion edged higher as investors turned to safe-haven assets amid lingering uncertainty over global trade policies.

Volatility watch: India VIX spikes

The India VIX, which gauges market fear, surged 4.71% to 15.72, indicating heightened uncertainty among traders. Analysts caution that higher volatility may keep markets choppy in the near term.

FII-DII action: Domestic investors step up buying

Foreign institutional investors (FIIs) continued their selling spree, offloading Indian equities worth Rs 3,937.83 crore on Monday. In contrast, domestic institutional investors (DIIs) absorbed the pressure, purchasing Rs 4,759.77 crore worth of stocks, providing some stability to the market.

Rupee under pressure

The Indian rupee continued its struggle against the US dollar, weighed down by FII outflows. Currency experts suggest that unless foreign inflows return, the rupee may remain under pressure in the near term.

Technical outlook: What to watch today

With Nifty hovering below key resistance at 23,150, a breakout above this level is crucial for further upside. Until then, traders may see range-bound movement, with 22,800 acting as a strong support zone.