GIFT Nifty down 410 points; here's the trading setup for today's session

Indian equity benchmarks closed higher on Wednesday, reflecting an overall positive market sentiment. Analysts say, although the index opened with a strong gap-up, the subsequent selling pressure in the second half resulted in a complete gap fill within the same session. This indicates the presence of selling interest at higher levels, suggesting that traders should remain cautious near key resistance zones.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a gap-down start
GIFT Nifty on the NSE IX traded lower by 410 points, or 1.79 per cent, at 22,441, signaling that Dalal Street was headed for a gap-down start on Thursday.

• Tech View: On the upside, resistance is placed at 22,800, above which the index could move towards 23,000 and higher. On the downside, a decisive fall below 22,200 may revive bearish momentum.
• India VIX: India VIX, which is a measure of the fear in the markets, fell 10.8% to settle at 24.87 levels.

US stocks gain
Wall Street ended higher on Wednesday, with strong gains in Alphabet and other heavyweights, after U.S. President Donald Trump suggested an end to the Middle East conflict could be close.

• S&P 500 +0.72%,
• Nasdaq +1.16%,
• Dow +0.48%

Asian stocks trade higher
Asian equities extended their rebound as investors rotated back into stocks on optimism that the Iran war may be nearing a conclusion. Oil dropped.

• S&P 500 futures were little changed as of 9:02 a.m. Tokyo time
• Hang Seng futures were little changed
• Japan’s Topix rose 1%
• Australia’s S&P/ASX 200 rose 0.5%
• Euro Stoxx 50 futures rose 3%

Oil drops
Oil prices fell more than $1 early on Thursday as markets awaited an address to the nation by President Donald Trump that could signal a U.S. pullback from the war in Iran.

Gold climbs
Gold prices climbed to a two-week high on Thursday, supported by a weaker dollar and signs of Middle East war de-escalation that may ease inflation pressures, with markets awaiting comments from U.S. President Donald Trump.

Major currencies steady
Major currencies held steady in thin trading on Thursday, as investors awaited a high-stakes televised address from U.S. President Donald Trump that is expected to shed light on a possible ceasefire in the Gulf war.

Stocks in F&O ban today

NIL

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 8,331 crore on Tuesday. DIIs, meanwhile, were net buyers at Rs 7,172 crore.

Rupee

The rupee gained 15 paise to 94.70 against US dollar in early trade on Wednesday, tracking positive cues from domestic equity markets and retreating American currency overseas.

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