Pre-Market Setup: GIFT Nifty futures up 460+ pts; D-Street likely to open higher

Indian equity markets are likely to make a strong beginning on Friday, with GIFT Nifty futures trading 467 points up at 22,954, suggesting a gap-up opening of benchmark indices. But traders might prepare for volatility since global sentiment is still weak amid increasing US-China trade tensions and mixed global market cues.

Wall Street tumbles on tariff worries

Overnight, US markets saw steep declines as escalating trade tensions under the Trump administration overshadowed positive economic data.

• Dow Jones fell 2.50%

• S&P 500 declined 3.46%

• Nasdaq slid 4.31%

These losses reflect growing anxiety around a potential recession scenario as the tariff standoff intensifies.

Asian markets open weak, gold at record high

Asian equities followed US weakness at open. Japan's Topix fell 4.7%, while Australia's ASX 200 declined 2.1%. Hang Seng futures fell 0.5%, indicating a risk-off tone. Meanwhile, gold reached a record high due to safe-haven demand.

Technical view: Nifty resistance seen at 22,500

Despite the expected gap-up, technical indicators hint at cautious optimism. The RSI shows a bearish crossover, suggesting the rally may fizzle out if Nifty fails to break above 22,500 decisively. Support is seen at 22,000.

India VIX jumped 5% to 21.43, pointing to heightened market nervousness.

FII net shorts rise, rupee weakens further

Foreign investors remained net sellers on Wednesday, offloading shares worth Rs 4,358 crore, while domestic institutional investors (DIIs) bought Rs 2,976 crore.
FII net short positions rose to Rs 1.15 lakh crore, up from Rs 1.09 lakh crore a day earlier, reflecting persistent bearishness.

The rupee extended its losing streak, settling 42 paise lower at 86.68 against the dollar, weighed down by global uncertainty and RBI’s recent rate cut.

F&O ban list

The following stocks are under the F&O ban today:

1. BirlaSoft

2. Hindustan Copper

3. Manappuram

4. Nalco