GIFT Nifty futures up 50 pts; D-Street likely to open higher amid strong global cues

GIFT Nifty traded 50 points higher at 23,226 on the NSE IX, reflecting a strong opening for Indian equities. The positive momentum follows in the wake of robust global cues and consistent institutional buying. Benchmark indices continued to gain for the fourth consecutive session on Thursday, with Nifty creating a strong bullish candle on the daily chart, supporting the uptrend.

Analysts highlights that if Nifty holds above 23,200-23,250, the rally can be extended to 23,500. However, with daily stochastic indicators approaching overbought levels, any failure to hold these levels can cause the index to consolidate between 22,800 and 23,200.

US markets subdued; Asian indices mixed

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Wall Street closed slightly lower on Thursday as investors weighed new economic data against the Federal Reserve's policy statement. The Dow closed almost flat (-0.03%), while the S&P 500 and Nasdaq fell 0.22% and 0.33%, respectively.

Asian markets had varied trends, with Japan's Nikkei 225 and Topix increasing 0.3%, while Hong Kong's Hang Seng futures declined 0.5%. Australia's S&P/ASX 200 was little changed, showing defensive sentiment in light of global trade worries.

India VIX falls; rupee remains firm

The India VIX, a gauge of market fear, fell 5.2% to 12.6, indicating lower fear among investors. The rupee, however, rose slightly by 1 paisa to close at 86.36 against the US dollar, backed by strong domestic equities.

FII/DII action: FPIs on buying spree

Foreign portfolio investors (FPIs) became net buyers, pumping Rs 3,239 crore into Indian equities on Thursday, showing renewed optimism. Domestic institutional investors (DIIs), however, sold shares worth Rs 3,136 crore, reflecting profit booking at higher levels.

Interestingly, FII net shorts were reduced from Rs 1.28 lakh crore to Rs 1.11 lakh crore, reflecting a decline in bearish bets.

Stocks in F&O ban today

Five stocks are under the F&O ban list for Friday’s session, having exceeded 95% of their market-wide position limit:

• Manappuram Finance
• Hindustan Copper
• Polycab India
• IndusInd Bank
• SAIL

Commodities: Gold steady, oil gains

Gold prices remained steady below all-time highs on account of geopolitical tensions and the dovish tone from the Fed, which strengthened safe-haven demand. Crude oil continued to rally on the back of new US sanctions on Iran and OPEC+ proposals to reduce supply.

Technical view: Will Nifty reach 23,500?

With robust buying interest and positive global cues, bulls have the trend. A decisive break above 23,250 can drive Nifty to 23,500 in the near future. But one should be careful as overbuying conditions may lead to some consolidation.