Dalal Street set for a positive start as GIFT Nifty trades higher

Domestic markets ended lower on Monday, with the Nifty declining 0.5% to close below the 24,000 mark at 23,946. The weakness was driven by profit booking following renewed geopolitical tensions over the weekend, along with selling pressure in Information Technology and Auto stocks. Analysts say Indian equities are expected to remain cautiously optimistic amid renewed geopolitical tensions in West Asia. Market participants will closely monitor the US-Iran negotiations in Qatar, with initial discussions centred on ensuring safe navigation through the Strait of Hormuz.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 45.5 points, or 0.19 per cent, at 23,999.50, signaling that Dalal Street was headed for a positive start on Tuesday.

• Tech View: The short-term trend remains constructive as long as the index holds above the 23,800 support level. Unless the Nifty falls below 23,800, a buy-on-dips strategy should be maintained. On the higher end, 24,200 is likely to continue acting as the immediate resistance.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 4.2% to settle at 13.61 levels.

US stocks end higher
U.S. stocks ended sharply higher on Monday, with the Dow hitting a record closing high, as weekend hostilities between the United States and Iran eased and as major technology-related shares rose following recent selling.

Asian shares gain
Asian equities rose, leaving the regional benchmark on track for its best quarterly gain in 17 years as technology stocks rallied. The yen weakened to a four-decade low against the dollar.

• S&P 500 futures were little changed as of 9 a.m. Tokyo time
• Hang Seng futures were little changed
• Japan’s Topix rose 0.5%
• Australia’s S&P/ASX 200 was little changed
• Euro Stoxx 50 futures rose 0.1%

Oil falls
Oil prices dropped on Tuesday, with investors eyeing the outcome of potential U.S.-Iran talks in Doha amid weekend missile fire from both sides that tested an interim ceasefire to end the four-month-old war.

Yen slips
The yen was pinned at levels not seen since 1986 on Tuesday, stoking worries that a direct intervention from Tokyo was around the corner, while the dollar backed away from 13-month highs ahead of jobs data that could influence the U.S. rate outlook.

Gold dips
Gold fell over 1% on Tuesday and was set for a fourth straight monthly decline, as uncertainty in the Middle East gave way to expectations of U.S. interest rate hikes to tame inflation.

Stocks in F&O ban today

1) 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.

Rupee
The rupee pared initial gains and settled lower by 6 paise at 94.51 against the US dollar on Monday, as renewed geopolitical tensions hit investors' risk appetite.

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