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

Benchmark indices opened with a gap-up on Wednesday and initially extended their gains, but the momentum failed to sustain, with selling pressure emerging as the session progressed. The indices subsequently traded lower through the day, giving up their early gains and closing in negative territory amid higher crude prices as Brent crude moved above $110. On the higher side, analysts say key level to watch is Monday's high of 23,175, only a move above the same will signal pullback towards 23,300 and 23,500 levels in the coming sessions being the 50% retracement of the entire recent decline from 24,774 to 22,180.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 38.5 points, or 0.17 per cent, at 22,690, signaling that Dalal Street was headed for a negative start on Thursday.


Tech View: A cautious stance is advisable, with 22,650–22,700 acting as a crucial support zone around the 200-WMA. If the index breaks below this zone, accumulated positions from the relief rally should be reviewed or reduced. Immediate resistance is placed at 23,000.

India VIX: India VIX, which is a measure of the fear in the markets, rose 6% to settle at 15.68 levels.

Asian shares mixed

Asian benchmarks were mixed in early Thursday trading, with South Korean shares falling 0.2% while Japanese stocks edged higher.

• S&P 500 futures fell 0.5% as of 10:05 a.m. Tokyo time
• Hang Seng futures fell 0.2%
• Japan’s Topix was little changed
• Australia’s S&P/ASX 200 fell 0.7%
• Euro Stoxx 50 futures fell 0.5%

US stocks end higher

The tech-heavy Nasdaq led Wall Street to a higher close on Wednesday after quarterly results from SpaceX and Super Micro Computer improved investor appetite for artificial intelligence-related stocks while weakness in communication services stocks capped gains.

Oil rises

Oil prices rose on Thursday as more attacks by the Houthis in Saudi Arabia prompted the United States to order some diplomats and family members to leave its missions in the Kingdom.

Gold eases

Gold slipped in early Asian trade on Thursday as market participants looked ahead to next week's Federal Reserve policy meeting for guidance on the trajectory of interest rates.

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

Stocks in F&O ban today

1) Ambuja Cement

2) Kaynes

3) 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.

Read more: Jio IPO Day 1: Issue subscribed 3 times on strong QIB push; retail portion booked 68%. Check GMP

FII/DII action

Foreign portfolio investors net bought shares worth Rs 1,022 crore on Wednesday. DIIs, meanwhile, were net buyers at Rs 1,614 crore.

Rupee

The rupee surged 53 paise to close at 94.38 against the US dollar on Wednesday, supported by foreign currency inflows linked to Reliance Industries' Jio Platforms IPO and RBI intervention to contain dollar demand.

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