Dalal Street likely to open in red amid weak GIFT Nifty cues

Benchmark indices witnessed a choppy trading session on May 7, with volatility remaining elevated due to the weekly expiry of Sensex. Meanwhile, Nifty formed a small bearish candlestick pattern with shadows in either direction signaling consolidation amid stock specific action. Going ahead, analysts say a breakout and a close above 24,400 will open further upside towards 24,600 and 24,800 levels in the coming weeks.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 103.50 points, or 0.42 per cent, at 24,295, signaling that Dalal Street was headed for a negative start on Friday.

• Tech View: Nifty has broken out of a symmetrical triangle pattern on the daily chart, indicating a positive shift in the short-term structure with potential upside towards 24,500 levels. On the volatility front, India VIX declined sharply by 7%, slipping below the 17 mark to a one-month low. Continued easing in volatility is likely to further support the ongoing bullish momentum.
• India VIX: India VIX, which is a measure of the fear in the markets, fell 0.3% to settle at 16.62 levels.

US stocks slip
The S&P 500 ended lower on Thursday, with Intel and other chip stocks retreating after a recent rally, while uncertainty around U.S.-Iran peace talks weighed on the wider market. U.S.-listed shares of Arm Holdings tumbled as worries about the company's ability to secure sufficient supplies for its new AI chip overshadowed a strong earnings forecast.

Asian shares down
Asian stocks pulled back from a record high and crude oil rose as escalating tensions in the Middle East revived concerns over energy supplies, testing the durability of the recent equity rally.

• S&P 500 futures rose 0.1% as of 9:57 a.m. Tokyo time
• Hang Seng futures fell 0.9%
• Nikkei 225 futures (OSE) fell 0.9%
• Japan’s Topix fell 0.7%
• Australia’s S&P/ASX 200 fell 1.2%
• Euro Stoxx 50 futures fell 0.9%

Oil rises
Oil rose and U.S. stock futures slipped in early trade on Friday, after the United States and Iran exchanged fire and put a month-long Middle East ceasefire in doubt.

Dollar firm
The dollar started Friday's Asian session on a firm footing against most major currencies after renewed hostilities broke out between the U.S. and Iran, while the Japanese yen held largely steady following fresh verbal jawboning from Tokyo.


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 bought shares worth Rs 341 crore on Thursday. DIIs, meanwhile, were net buyers at Rs 441 crore.

Rupee
The Indian rupee turned sharply higher on Thursday at 94.25, boosted by a slump in crude oil prices, with stop-losses on short rupee wagers and dollar sales in the non-deliverable forward market also lifting the currency, traders said.

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