D-St set for a negative opening as GIFT Nifty signals weak start

Domestic equities ended the week on a strong note, with Nifty rising 1.1% to close at 24,334 on Friday, driven by strong June-quarter earnings from index heavyweights across the IT and Financials sectors. Analysts say Indian equities are expected to witness a gradual uptrend next week, on the back of a strong Q1 earnings season so far, which is likely to remain the key driver of sectoral and stock-specific performance. With several index heavyweights reporting earnings over the weekend, investor focus will remain on management commentary and earnings reactions, which are expected to shape sectoral performance and define the near-term market narrative.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 52 points, or 0.21 per cent, at 24,297, signaling that Dalal Street was headed for a negative start on Monday.

• Tech View: In the near term, the index is likely to remain strong, with the potential to advance towards the 24,800 level. On the downside, immediate support is placed at 24,200. A decisive fall below this level could trigger a phase of consolidation.
• India VIX: India VIX, which is a measure of the fear in the markets, fell 2.08% to settle at 13.15 levels.

US stocks end lower
Wall Street extended its decline on Friday as a pullback on stocks associated with the AI boom, which has driven many of the gains so far this year, morphed into a larger risk-off sentiment.

Asian shares cautious
Asian share markets were hesitant on Monday as the escalating conflict in the Gulf lifted oil prices and fanned fears of inflation, while a packed week of major tech earnings will further test investor faith in the AI trade.

• S&P 500 futures were little changed as of 9:45 a.m. Tokyo time
• Hang Seng futures rose 0.5%
• Australia’s S&P/ASX 200 was little changed
• Euro Stoxx 50 futures rose 0.2%

Also read: Stocks in news: ICICI Bank, YES Bank, Kotak Bank, RIL, Axis Bank

Oil jumps
Oil prices jumped 3% on Monday, with Brent surpassing $90 a barrel, as the United States and Iran expanded attacks in the Middle East that have curbed energy shipments in the Strait of Hormuz.

Dollar firm
The dollar made a modest advance against most of its global peers at the start of Asian trading on Monday as the conflict in the Middle East escalated, with oil prices rising and investor confidence remaining fragile after turbulence last week.

Stocks in F&O ban today

1) Kaynes

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 218 crore on Friday. DIIs, meanwhile, were net buyers at Rs 504 crore.

Rupee
The Indian rupee logged its sharpest weekly drop since May, with Friday's uneventful trading session closing out the week, as elevated oil prices and strong merchant dollar demand renewed worries about the currency's trajectory.

Read more: Nifty ready for 24,500-24,750 levels after breakout rally: Analysts


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