GIFT Nifty Gains 25 Points: Here’s Today’s Stock Market Setup

On Wednesday, the benchmark Nifty slipped below the 25,000 mark and moved sideways throughout the session. Analysts suggest that the market is consolidating, with higher levels seeing selling pressure due to continuous foreign investor selling and weak results from key stocks.

“We expect this consolidation to persist given the mixed global cues and absence of strong domestic factors. Big companies like Infosys, Axis Bank, LTI Mindtree, Wipro, and Nestle will be in focus as they announce their Q2 results today,” said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal.

Pre-Market Breakdown:

GIFT Nifty Indicates Positive Opening:

GIFT Nifty (previously SGX Nifty) on NSE IX traded up by 25 points, or 0.10%, at 25,027, signaling a positive start for the Indian stock market on Thursday.

Tech View:

The Nifty has recently broken below the 10 and 20-period EMA (Exponential Moving Averages), which were acting as support for the past few months. These levels (25,150-25,200) now serve as resistance, based on the concept of change in polarity.

India VIX:

The India VIX, which measures market fear, rose slightly by 0.38% to 13.05 levels.

Global Market Updates:

US Stocks Rise:

On Wednesday, US stocks closed higher, with the Dow Jones Industrial Average setting a new record. Small-cap stocks and financial shares saw gains despite declines in large tech companies.

• Dow Jones: +0.79%
• S&P 500: +0.47%
• Nasdaq: +0.28%

Asian Stocks Gain:

Asian stocks followed Wall Street’s lead, with a shift from large tech stocks to smaller, economically sensitive companies helping the rally.

• Japan’s Topix: +0.3%
• Australia’s S&P/ASX 200: +1.1%
• S&P 500 futures: -0.2%

Oil Prices:

Oil prices rose in early Asian trading after falling in the previous two sessions, thanks to a surprise drop in US crude stockpiles.

Dollar Strengthens:

The US dollar held near an 11-week high, driven by upcoming US election uncertainty and the strong US economy, which could slow down the Federal Reserve’s easing of interest rates compared to other regions.

Stocks in F&O Ban for Today:

1. Chambal Fertilisers
2. SAIL
3. Hindustan Copper
4. RBL Bank
5. Granules
6. Manappuram
7. PNB
8. GNFC
9. IDFC First Bank
10. Tata Chemicals
11. IEX
12. Nalco
13. LTF
14. Bandhan Bank

These stocks are in the ban period under the F&O segment because their market-wide position limits have been crossed.

Institutional Activity:

• Foreign Investors (FII): Net sellers of ₹3,435 crore on Wednesday.
• Domestic Investors (DII): Bought shares worth ₹2,526 crore.

Rupee Movement:

The Indian rupee strengthened slightly by 2 paise, closing at 84.02 against the US dollar, supported by falling crude oil prices.

FII Data:

Net shorts from foreign institutional investors increased from ₹1.57 lakh crore on Tuesday to ₹1.68 lakh crore on Wednesday.