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

Benchmark indices witnessed a decline from the day’s highs and closed near the day’s lows as the market remained volatile at the start of the new series. Continued global uncertainty and an intraday spike in Brent crude oil prices kept investor sentiment cautious. Analysts say a decisive fall below 22,600 for Nifty might trigger a sharper correction. On the other hand, if the index sustains above 22,600, it might witness a meaningful recovery.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 43 points, or 0.19 per cent, at 22,616.5, signaling that Dalal Street was headed for a negative start on Thursday.


Tech View: Going forward, 22,600 is likely to act as a crucial support. A decisive fall below 22,600 might trigger a sharper correction. On the other hand, if the index sustains above 22,600, it might witness a meaningful recovery.

India VIX: India VIX, which is a measure of the fear in the markets, rose 0.5% to settle at 13.49 levels.

Asian shares mixed

Asian shares edged lower after Micron Technology Inc. gave an upbeat forecast, but warned that rising compensation costs would weigh on profit margins. Alphabet Inc.’s shares rose after Google began rolling out the Gemini 4 Argon, its long-awaited flagship artificial intelligence model.

• S&P 500 futures rose 0.2% as of 9:52 a.m. Tokyo time
• Hang Seng futures fell 0.7%
• Nikkei 225 futures (OSE) rose 1.3%
• Japan’s Topix fell 0.6%
• Australia’s S&P/ASX 200 fell 1.2%
• Euro Stoxx 50 futures fell 0.7%

US stocks fall

Most of the US stock market fell Wednesday as Wall Street contended with the downside of a US economy that keeps powering through its many challenges.

The S&P 500 slipped 0.3% to close out its third losing month in the last four. The Dow Jones Industrial Average dropped 443 points, or 0.9%, and the Nasdaq composite added 0.2%.

Oil subdued

Oil prices were nearly flat in early Asia trade on Thursday, following the previous day's gains and steep monthly rises, as investors assessed the outcome of US-Iran peace talks and the outlook for Middle East crude exports.

Dollar rises

The dollar held near a two-month high on Thursday, supported by an extended rise in US Treasury yields partly driven by concerns over persistent global price pressures stemming from the Middle East war.

Gold prices flat

Gold prices were flat in early Asian trading on Thursday, as investors awaited US jobs data for clues on the Federal Reserve's interest rate path.

Read more: Ahead of Market: 10 things that will decide stock market action on Thursday

Stocks in F&O ban today

1) SAIL

2) Bandhan Bank

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.

Read more: Nithin Kamath reveals Zerodha's leadership secret: Why the broker rarely hires outsiders for top jobs

FII/DII action

Foreign portfolio investors net sold shares worth Rs 10,148 crore on Wednesday. DIIs, meanwhile, were net buyers at Rs 11,271 crore.

Rupee

The rupee pared gains to settle flat at 95.94 against the US dollar on Wednesday as an overnight decline in the US dollar index and retreating crude oil prices from their elevated levels were offset by heavy FII outflows.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.