Pre-Market Setup (May 22): Dalal Street may open flat to weak; GIFT Nifty future slips 40 pts
FII short build-up, US deficit fears, and global equity drop may cap upside; Nifty must defend 24,700
)
08:48 AM IST
Dalal Street is expected to make a cautious beginning on Thursday as GIFT Nifty slipped close to 40 points in early trade, following jittery global markets and a sharp rise in foreign institutional short positions. Having posted a robust 130-point rally in the last session, Nifty is resisting at the 25,000 level while support remains firm at 24,700 levels.
At 7:00 am, GIFT Nifty was lower by 43 points at 24,787, indicating a breather from the recent upmove. Although domestic macro data and monsoon expectations are supportive, global nervousness and enhanced volatility may cause rangebound action.
Here's what you need to know before the market opens
- Wall Street slips: The Dow dipped close to 2 per cent overnight as bond yields surged on fears of expanding US fiscal deficit. S&P 500 and Nasdaq also dipped more than 1.5 per cent.
- Asia weakly opens: Japan's Topix and Australia's ASX 200 are trading down. Euro Stoxx futures are predicting a flat European opening.
- FII positioning goes defensive: FIIs have aggressively raised net short positions in index futures — from Rs 23,498 crore on Monday to Rs 38,748 crore. Pressure would be expected if Nifty does not cross 25K.
- India VIX rises: The fear indicator gained 0.9 per cent to 17.55, marking increased nervousness with respect to election outcomes and critical data prints.
- F&O ban stocks: RBL Bank and Manappuram are lifted in the ban list since they are above 95 per cent of the market-wide position limit.
- Rupee depreciates, gold rises: The rupee closed down 1 paisa at 85.59/$ following crude oil price hikes. Gold edged up as global investors turned to safe-haven assets.
- FIIs, DIIs are still net buyers: FIIs purchased Rs 2,202 crore while DIIs infused Rs 684 crore on Wednesday, which translates into institutional faith in India's long-term tale.
Technical Analysis
If Nifty does not break and hold above 25,000, short positions could dictate the trend. A fall below 24,700 can pull the index towards the 21-day EMA level at 24,428. Analysts believe dips in the intraday session will find buying as long as overall sentiment remains pegged back by robust macro and monsoon optimism.
What to watch today
- FIIs' futures trades
- Oil, gold, and dollar index action
- Monsoon update and policy signals
- Corporate commentary ahead of earnings
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
)
)
)
)
)
)
Pre-market setup (July 11): GIFT Nifty futures down 137 pts at 25,285 as TCS Q1 and tariff worries loom
Pre-Market Update (July 9): Gift Nifty down 34 points as tariff tensions, China data dampen mood
Pre-market Update (July 8): Gift Nifty down 41 points; Indian markets may open lower amid Trump tariff shock
Pre-market Update(July 4): Gift Nifty up 22 points; Sensex, Nifty eye flat-to-positive open amid India-US trade buzz
Pre-Market Setup (July 2): GIFT Nifty hints at firm open; Powell’s rate talk, IPO buzz, FII flows to drive trade
