Nifty and Sensex Likely to Open on a Positive Note; Gift Nifty Trades 58 Points Higher
DSIJ Intelligence-2Categories: Mkt Commentary, Trending
GIFT Nifty (earlier SGX Nifty) on the NSE IX traded higher by 58 points, or 0.22 per cent, at 25,917, indicating a positive start for Dalal Street on Tuesday.
Pre-Market Update at 7:57 AM: Indian equity benchmarks recovered sharply from Monday’s lows to end in the green, supported by improved sentiment ahead of the first leg of the earnings season. Analysts expect overall trade to remain largely sideways with stock-specific action dominating the session.
GIFT Nifty (earlier SGX Nifty) on the NSE IX traded higher by 58 points, or 0.22 per cent, at 25,917, indicating a positive start for Dalal Street on Tuesday. However, the late buying seen in Monday’s session is unlikely to change the broader sentiment. The Nifty is expected to face firm resistance in the 26,000–26,100 zone, where selling pressure may reappear, while immediate and crucial support lies at 25,650. Meanwhile, India VIX, the volatility gauge, rose 4 per cent to settle at 11.37, reflecting slight risk aversion.
Global cues were mixed. US equities ended higher overnight with the Dow and S&P 500 closing at record highs, driven by gains in technology names and Walmart. Investors mostly shrugged off concerns surrounding the U.S. Justice Department’s criminal investigation of Federal Reserve Chair Jerome Powell. The Dow gained 0.2 per cent, the S&P 500 added 0.2 per cent, and the Nasdaq jumped 0.3 per cent.
Asian equities opened firm on Tuesday, buoyed by optimism around earnings and regional economic momentum. As of 9:21 a.m. Tokyo time, S&P 500 futures edged 0.1 per cent lower, Japan’s Topix surged 2.1 per cent, Australia’s S&P/ASX 200 advanced 0.8 per cent, and Euro Stoxx 50 futures rose 0.3 per cent.
On the currency front, the US dollar weakened after the Trump administration launched a criminal investigation against Fed Chair Powell, raising questions about central Bank independence and confidence in U.S. assets. The Indian rupee recovered marginally and settled 1 paisa higher at Rs 90.16 against the USD on Monday, supported by a weaker American currency and lower crude oil prices.
In the derivatives segment, SAIL and Sammaan Capital remain under the F&O ban for Tuesday, as both securities crossed 95 per cent of the market-wide position limit. Foreign portfolio investors net sold equities worth Rs 3,638 crore on Monday, while domestic institutional investors were net buyers with inflows of Rs 5,839 crore.
Disclaimer: The article is for informational purposes only and not investment advice.