Pre-Opening Update: D-Street Set for Cautious Opening as GIFT Nifty Signals Muted Start

Pre-Market Update at 7:40 AM: Indian benchmark indices are likely to witness a cautious opening on Wednesday, with GIFT Nifty signalling a muted start. The outlook remains subdued after the Nifty 50 declined more than 1 per cent on Tuesday, while broader market indices fell more sharply.

Elevated crude oil prices, renewed inflation concerns and uncertainty ahead of the U.S. Federal Reserve’s policy decision are expected to keep investors cautious. Market participants will closely track the Federal Reserve’s September 15–16 policy meeting, with the rate decision due on September 16, particularly amid concerns over the inflationary impact of higher crude prices.

GIFT Nifty traded on the NSE IX was higher by 8.5 points at 23,211, signalling a muted opening for Dalal Street on Wednesday.

The overall trend remains bearish, with analysts suggesting that any recovery could face selling pressure. The Nifty 50 has support at 23,000, while resistance has shifted to the 23,350–23,500 zone.

A decisive close below 23,000 could extend the downside towards 22,500–22,600, which is near the weekly 200-SMA.

India VIX, a measure of market volatility, rose 9 per cent to settle at 13.43, indicating increased caution among market participants.

Asian stocks were broadly steady on Wednesday as elevated oil prices and rising bond yields kept investors cautious ahead of the U.S. Federal Reserve’s interest-rate decision.

S&P 500 futures rose 0.1 per cent as of 9:45 a.m. Tokyo time. Hang Seng futures gained 0.3 per cent, while Japan’s Topix rose 0.8 per cent. Australia’s S&P/ASX 200 was little changed, while Euro Stoxx 50 futures advanced 0.3 per cent.

U.S. stocks declined on Tuesday as higher oil prices and rising bond yields added pressure on Wall Street. The S&P 500 fell 0.4 per cent, while the Dow Jones Industrial Average declined 328 points, or 0.6 per cent. The Nasdaq Composite dropped 0.8 per cent.

The following securities are under the F&O ban for Wednesday:

1. SAIL
2. Manappuram
3. Inox Wind
4. Kaynes
5. Bandhan Bank

Securities enter the F&O ban period when their open positions cross 95 per cent of the market-wide position limit.

Foreign portfolio investors remained net sellers in the Indian equity market on Tuesday, offloading shares worth Rs 2,978 crore. Domestic institutional investors, however, remained net buyers, purchasing shares worth Rs 2,686 crore.

The Indian rupee depreciated 38 paise to close at Rs 95.92 against the U.S. dollar on Tuesday. The currency came under pressure amid escalating tensions in the Middle East and rising Brent crude oil prices, which touched USD 108 per barrel.

Indian equities are likely to remain sensitive to movements in crude oil prices, global bond yields, foreign fund flows and developments around the U.S. Federal Reserve’s policy decision. The Nifty 50’s 23,000 level will remain an important technical level for market participants, while the 23,350–23,500 zone could act as immediate resistance.

Disclaimer: The article is for informational purposes only and not investment advice.

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