D-Street poised for a cautious opening as GIFT Nifty signals a muted start

Indian equity markets ended marginally lower on Thursday, as elevated crude oil prices and positioning ahead of the weekly Sensex expiry kept investors cautious despite a supportive global backdrop. The NSE Nifty50 ended at 24,395.85, down 40.10 points, or 0.16%, while the Sensex fell 113.61 points, or 0.15%, to close at 78,079.96.

Analysts suggest that the market continues to exhibit resilience but lacks a strong directional trigger. While expectations of a less restrictive US monetary policy have improved the global investment backdrop, elevated crude prices and geopolitical uncertainty are keeping domestic investors cautious. “Until there is greater clarity on energy markets, Indian equities are likely to remain range-bound, with corporate earnings and stock-specific developments continuing to drive market performance,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a muted start

GIFT Nifty on the NSE IX traded lower by 29 points, or 0.12 per cent, at 24,430.5, signaling that Dalal Street was headed for a muted start on Friday.

Tech View: Nifty 50 ended the session on a lower note, the index witnessed sustained selling pressure during the first half of the session, forming a lower-high and lower-low structure before stabilizing just above the 24,250 zone. However, the index staged a small recovery towards the close, recovering from the day's lower levels, although the rebound remained limited and did not significantly alter the near-term cautious structure.

The Nifty witnessed another lackluster session, remaining confined between the 50EMA and 200DMA on the 30-minute chart. Level-wise, 24,450 will remain an immediate resistance, and a decisive move above this level is required for a meaningful recovery, said Rupak De, Senior Technical Analyst at LKP Securities. On the lower end, support is placed at 24,300.

A fall below 24,300, he believes, might trigger further weakness in the market. “Until there is a decisive breakout on either side, the index is likely to remain rangebound, offering limited trading opportunities,” said De.

India VIX: India VIX, which is a measure of the fear in the markets, fell 1.58 % to settle at 11.67 levels.

US stocks rise
The US stock market rose to an all-time high Thursday following the latest sign that inflation is getting less bad. Stocks also got a lift from easing oil prices in their latest yo-yo move.

The S&P 500 climbed 0.7% and topped its prior record set last week. The Dow Jones Industrial Average added 69 points, or 0.1%, and the Nasdaq composite gained 0.8%.

Asian shares gain
Asian stocks gained as further evidence of moderating US inflation and a pullback in oil prices reinforced bets that the Federal Reserve will refrain from raising interest rates next month.

• S&P 500 futures were little changed as of 9:02 a.m. Tokyo time
• Hang Seng futures fell 0.6%
• Japan’s Topix rose 0.4%
• Australia’s S&P/ASX 200 fell 0.7%
• Euro Stoxx 50 futures rose 0.2%

Oil steadies
Oil prices inched higher on Friday after the U.S. threatened ​to maintain a naval blockade ​of Iran indefinitely, reviving crude supply concerns, after prices fell in ​the previous session on a weaker global demand outlook.

Gold falls
Gold prices fell on Friday as investors locked in profits after non-yielding ​bullion climbed to an over two-month ​high in the previous session, with mild US inflation data ​undermining expectations of a September Federal Reserve rate hike.

Read Also: Ahead of Market: 10 things that will decide stock market action on Friday

Stocks in F&O ban today
1) BANDHANBNK
2) LICI
3) MANAPPURAM
4) SAIL

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

FII/DII action
Foreign portfolio investors net sold shares worth Rs 510.69 crore on Thursday, while DIIs added shares worth Rs 4,353.09 crore.

Rupee
The Indian rupee traded weaker by around 10 paise at 95.43, as the recent rise in crude oil prices continued to weigh on the currency by increasing import-cost concerns. The US Dollar Index holding near 100 also kept pressure on the rupee, while India's CPI inflation at 4.45% added some caution to the domestic outlook

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)