D-St set for a cautious opening as GIFT Nifty signals muted start

Benchmark indices closed near the day’s highs on Thursday, supported by fresh buying in the second half of the session, particularly across the broader market. Despite volatility surrounding the Sensex expiry, investor sentiment improved after the Fed kept interest rates unchanged. Going ahead in the coming session, analysts say a follow through strength will open further upside towards 23,100 levels. Failure to do so will lead to consolidation in the range of 22,650-22,950.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a muted start

GIFT Nifty on the NSE IX traded lower by 14.5 points, or 0.06 per cent, at 23,028, signaling that Dalal Street was headed for a muted start on Friday.


Tech View: The RSI has also witnessed a bullish crossover, supporting positive short-term momentum. As long as Nifty sustains above its 20-DMA and the crucial support zone of 22,800, the short-term outlook remains positive, with resistance at 23,175.

India VIX: India VIX, which is a measure of the fear in the markets, fell 7% to settle at 15.12 levels.

Asian shares decline

The Kospi Index in South Korea — a key barometer of the AI trade — fell over 3% with chip heavyweights Samsung Electronics Co. and SK Hynix Inc. declining. That dragged the MSCI Asia Pacific Index down 0.3%.

• S&P 500 futures fell 0.8% as of 9:46 a.m. Tokyo time
• Hang Seng futures rose 0.4%
• Nikkei 225 futures (OSE) fell 1.8%
• Japan’s Topix fell 0.4%
• Australia’s S&P/ASX 200 rose 1.1%
• Euro Stoxx 50 futures fell 0.1%

US stocks slide

US stocks slid on Thursday, with investors reassessing big tech's massive AI spending spree as they digested high-profile earnings and crucial inflation data the day after the Federal Reserve held US interest rates steady. All three major US equity indexes lost ground, with the tech-laden Nasdaq losing the most in the wake of Alphabet's disappointing quarterly results released late Wednesday.

Gold prices ease

Gold prices eased in early Asian trade on Friday after dropping more than 1% in the previous session, as stubborn US inflation fuelled expectations of further Federal Reserve rate hikes, weighing on bullion.

Australian dollar stumbles

The Australian dollar stumbled on Friday as hefty cash burn by tech giants sparked a rout in equities and dented risk assets, while the New Zealand dollar steadied after being battered by a surprise decision of the central bank to keep rates unchanged.

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

Stocks in F&O ban today

1) Kaynes

2) 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: Market Trading Guide: Eternal among 2 stocks to buy for Friday for healthy returns

FII/DII action

Foreign portfolio investors net sold shares worth Rs 944 crore on Thursday. DIIs, meanwhile, were net buyers at Rs 1,924 crore.

Rupee

The rupee consolidated in a narrow range and ended 2 paise higher at 95.26 against the US dollar on Thursday, supported by positive domestic markets and softening crude oil prices.

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