GIFT Nifty down 270 points; here's the trading setup for today's session

Domestic headline indices ended Friday with sharp cuts, ending their two-session rally as Iran-Israel/US war not seeing any sign of truce. A spike in energy prices and a continuously falling rupee has raised investors' worries. Amid high volatility, markets were mainly dragged by financials, auto and consumer stocks. Nifty settled at 22,819.60, falling by 486.85 points or 2.09% while the BSE Sensex closed at 73,583.22, declining 1,690.23 points or 2.25%.

Nifty marked its fifth consecutive weekly decline of 1.27%, with NSE cash market volumes surging 25% from the prior session due to semi-annual index rebalancing, Vinay Rajani, Senior Technical Research Analyst at HDFC Securities said.

"On the weekly chart, Nifty has formed a long-legged “Doji” candlestick with nearly identical open and close levels, hinting at potential trend reversal. However, confirmation requires a breakout above this candle's high. The recent swing high of 23,465 now acts as a key resistance; a move above it could trigger short covering. On the downside, the swing low at 22,471 offers near-term support," Rajani added.


Here's breaking down of the pre-market actions:

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a gap-down start
GIFT Nifty on the NSE IX traded lower by 272 points, or 1.20 per cent, at 22,542, signaling that Dalal Street was headed for a gap-down start on Monday.

• Tech View: Commenting on the current trends, Dr. Ravi Singh, Chief Research Officer from Master Capital Services said the index has decisively breached the 23,000 psychological mark and remains firmly entrenched below its 200-day EMA, signaling a deepening bearish trend.
• India VIX: Meanwhile, the volatility gauge India VIX ended at 26.80, up by 8.77% from the last closing.

US Stocks end lower
U.S. stocks plunged on Friday, with all three major indexes closing at their lowest levels in over seven months, while the Dow officially entered correction territory as the ongoing Middle East conflict dampened investor sentiment.

Asian shares slip
Stocks sold off and crude oil climbed as tensions in the Middle East intensified, with Iran-backed Houthi forces entering the conflict and an expanded US military presence raising concerns about a prolonged confrontation.

• S&P 500 futures fell 0.4% as of 9:34 a.m. Tokyo time
• Japan’s Topix fell 4.3%
• Australia’s S&P/ASX 200 fell 1.2%
• Euro Stoxx 50 futures fell 1.2%

FII/DII action
Foreign institutional investors (FIIs) were net sellers of Indian equities as they sold shares worth Rs 4,367.30 crore on Friday while the domestic institutional investors (DIIs) shares purchased shares worth Rs 3,566.15 crore.

Stocks in Ban
Steel Authority of India (SAIL) is under F&O trade ban today.

Rupee
The Indian rupee touched a record ⁠low of 94.84 on Friday, down nearly 1%, as global markets contended with considerable volatility due to worries about a sustained disruption of global energy supplies due to the Middle East conflict.

(Inputs from agencies)


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