Dalal Street Set for Positive Open: GIFT Nifty Up 70 Points

Pre-Market Update at 7:49 AM: Indian equity markets are set to open on a positive note, with GIFT Nifty indicating early strength despite recent profit booking in frontline indices. Sentiment remains constructive, supported by healthy Q3 business updates and expectations of higher government capital expenditure ahead of the Union Budget, even as global geopolitical developments keep volatility in check.

GIFT Nifty, earlier known as SGX Nifty, was trading higher by 69 points or 0.26 per cent at 26,389, signalling a positive start for Dalal Street on Tuesday. This comes after the Nifty ended the previous session 78 points lower due to profit booking in Banking stocks, following Bank Nifty’s move to a fresh all-time high.

From a technical perspective, analysts believe some near-term consolidation is likely before the next leg of the up move. The broader market structure remains strong, with the index confirming a breakout from a symmetrical triangle pattern on the daily chart. Immediate support is seen around the 26,000 level.

Market volatility edged up, with India VIX rising 6.06 per cent to close at 10.02, indicating a slight increase in caution among investors.

Global cues were largely supportive. Wall Street closed higher overnight, led by financial stocks, which pushed the Dow Jones Industrial Average to a new all-time high. Energy shares also gained after a U.S. military strike captured Venezuelan President Nicolas Maduro. The S&P 500 rose 0.64 per cent, the Nasdaq gained 0.69 per cent, and the Dow surged 1.23 per cent.

Asian markets followed a mixed but generally positive trend. Japan’s Topix climbed 1.4 per cent, while Australia’s S&P/ASX 200 slipped 0.5 per cent. Euro Stoxx 50 futures were up 1.3 per cent, and S&P 500 futures were largely unchanged during early Asian trade.

In the currency market, the U.S. dollar remained steady near a two-week high as concerns around U.S. military action in Venezuela eased and dovish comments from Federal Reserve officials supported risk appetite. The Indian rupee weakened for the fourth consecutive session, closing 8 paise lower at 90.28 per USD, weighed down by a firm dollar and muted domestic equity sentiment.

On the institutional front, foreign portfolio investors were marginal net sellers, offloading shares worth Rs 36 crore on Monday. Domestic institutional investors, however, provided strong support, with net purchases of Rs 1,764 crore.

In the derivatives segment, SAIL and Sammaan Capital remain in the F&O ban list after crossing 95 per cent of the market-wide position limit. Traders are advised to avoid initiating fresh positions in these stocks.

Overall, markets are expected to remain firm with a positive bias, supported by strong corporate updates and budget-related optimism, though global geopolitical developments may trigger intermittent volatility.

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