Pre-Market Setup (May 27): GIFT Nifty futures slip 13 pts; Dalal Street set for muted start amid global caution

Indian stock markets are likely to start flat to muted on Tuesday, May 27, with GIFT Nifty futures trading down 13 points at 25,036. Global sentiment has remained cautious, but strong domestic macro data along with fewer FII shorts are expected to continue to provide support during the coming session.

GIFT Nifty futures traded marginally lower, indicating a lacklustre start for Indian markets. The medium-term outlook is distinctly mildly bullish, as analysts expect Nifty to continue to test the 25,300-25,350 range provided support is held at 24,800.

India VIX above 18; volatility on radar

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On Monday, India VIX increased over 4 per cent to 18.02, indicating that traders are becoming more nervous about important global trade matters. High volatility suggests that intraday trading may be choppy.

FIIs reduce net short position; DIIs continue to buy

Foreign Institutional Investors (FIIs) modified their net short positions in the futures segment, moving from Rs 54,197 crore down to Rs 51,312 crore. FIIs net purchased Rs 136 crore in shares on the cash side. Domestic Institutional Investors (DIIs) were more aggressive, purchasing Rs 1,746 crore.

Rupee rallies for second session

The rupee gained 35 paise to close at 85.10 against the US dollar, as domestic equities rose and the US dollar weakened.

Asian markets mixed; dollar weakens

Asian equities opened up subdued. S&P 500 and Euro Stoxx 50 futures opened green, even though Hang Seng and Japan's Topix were both down. The US dollar sold off, struggling to regain its footing amid fiscal worries and trade uncertainties.

Gold gains on safe-haven buying

On Tuesday, gold prices were up, supported by dollar weakness and investor appetite for safe-haven assets amid global trade and fiscal concerns.

F&O ban list: 5 stocks barred today

NSE F&O ban list included RBL Bank, Manappuram, Hindustan Copper, Titagarh Wagons and Chambal Fertilisers. All these stocks have crossed a market-wide position limit of 95 per cent.