GIFT Nifty futures down 5 points; markets likely to open flat

Indian equities are likely to open on a cautious note on Tuesday, tracking mixed global sentiment and persistent selling pressure from foreign investors. GIFT Nifty was trading nearly flat, down 5 points at 22,584, indicating a muted start for Dalal Street.

Global cues weigh on sentiment

US markets closed mixed overnight as concerns over demand for AI-related technology pressured major indices. The Dow Jones gained 0.08 per cent, while the S&P 500 and Nasdaq declined by 0.50 per cent and 1.21 per cent, respectively. Asian markets followed suit, with Japan’s Topix falling 0.6 per cent, Hong Kong’s Hang Seng futures declining 2.2 per cent, and Australia’s S&P/ASX 200 down 0.9 per cent.

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Technical view: Reversal signs awaited

The Nifty 50 index continues to show weakness, slipping to an eight-month low. Analysts suggest that a sustainable move above 22,950 will be crucial to confirm any strength. Until then, a ‘sell on rise’ approach is advisable, with immediate support placed at 22,600.

India VIX declines

India VIX, a key measure of market volatility, dropped 0.6 per cent to settle at 14.44 levels, signalling a relatively stable sentiment despite broader market weakness.

FII/DII action: FIIs remain net sellers

Foreign portfolio investors (FPIs) offloaded shares worth Rs 6,287 crore on Monday, extending their selling streak. Domestic institutional investors (DIIs), however, provided some support by purchasing shares worth Rs 5,185 crore.

Rupee under pressure

The rupee continued to weaken, falling 4 paise to settle at 86.72 against the US dollar amid persistent FII outflows and weak global sentiment.

Stocks in F&O ban

Two stocks—Manappuram and Chambal Fertilisers—remain in the F&O ban list as their open interest has exceeded 95 per cent of the market-wide position limit.

Outlook for the day

With no major domestic triggers, markets are expected to track global trends. Weakness in the US tech sector and continued FII selling may keep indices under pressure. Traders should adopt a stock-specific approach while keeping a close watch on Nifty’s 22,600 support level and 22,950 resistance for potential trend reversals.