Dalal Street set for solid opening as GIFT Nifty indicates a positive start. Key levels and triggers to track

On Friday, Indian markets traded under pressure, with the Nifty slipping below the 24,000 mark. Analysts say markets are likely to consolidate in the near term, with sentiment staying cautious as investors continue to monitor developments in the West Asia conflict. The ongoing uncertainty around US-Iran negotiations, coupled with disruptions in the Strait of Hormuz, is keeping crude oil prices elevated and risk appetite subdued. The lack of meaningful progress on the geopolitical front is expected to keep pressure on energy price, rupee and equity markets.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 140 points, or 0.58 per cent, at 24,094, signaling that Dalal Street was headed for a positive start on Monday.

• Tech View: Technically, the index faced resistance near the 100 EMA on the daily chart, which capped the rally and triggered fresh selling, dragging it below the 24,000 mark. The broader setup now appears bearish, with Nifty likely to head towards 23,500.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 6.04% to settle at 19.71 levels.

US stocks end higher
The S&P 500 and Nasdaq ended Friday at record highs, driven by optimism over potential U.S.-Iran negotiations to end their conflict and a sharp rally in Intel shares that lifted the broader semiconductor sector. Meanwhile, Pakistani officials indicated that Iran’s foreign minister, Abbas Araqchi, was expected to arrive in Islamabad on Friday to discuss proposals aimed at reviving peace talks.

Asian shares gain
Crude oil pared its gains and Asian stocks rose after Axios reported that Iran offered the US a new proposal regarding the reopening of the Strait of Hormuz.

Asian shares rose 1.2% and crude oil trimmed earlier gains to rise 1.4% to $106.78 a barrel. The commodity had earlier risen as much as 2.5%. Gold also erased earlier losses to trade flat.

• S&P 500 futures were little changed as of 9:58 a.m. Tokyo time
• Japan’s Topix was little changed
• Australia’s S&P/ASX 200 fell 0.6%
• Euro Stoxx 50 futures were little changed

Oil gains
Oil prices extended gains on Monday, rising nearly 2% as peace talks between the U.S. and Iran stalled while shipments through the Strait of Hormuz remained ‌limited, keeping ⁠global ⁠oil supplies tight.

Gold falls
Gold fell on Monday, pressured by a firm dollar, while higher oil prices heightened fears of inflation and higher-for-longer interest rates as U.S.-Iran peace talks remained stalled.

Dollar advances
The U.S. dollar started Monday's session on the front foot as dimming hopes of a deal to end the Middle East war sapped the mood, keeping the Japanese yen pinned near the crucial 160 level ahead of the Bank of Japan's policy decision later in the week.

Stocks in F&O ban today

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 8,827 crore on Friday. DIIs, meanwhile, were net buyers at Rs 4,700 crore.

Rupee
The rupee extended its losing streak for the fifth day in a row, depreciating 15 paise to close at 94.16 against the US dollar on Friday due to higher crude oil prices and strengthening American currency, with prospects of West Asia peace talks hanging in the balance.

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