ID-Street willing to make a bad start today? GIFT Nifty futures fell by 80 points
Domestic stock markets ended Thursday near the day’s lows, snapping a 14-day winning streak in the broader market. The GIFT Nifty (formerly SGX Nifty) showed a weak start to Friday’s trade, down 85 points or 0.34 percent at 24,561, as of morning trade. The market is expected to react to the reduction in inflation data, which stands at 5.48 percent.
US inflation and Fed expectations weighed on sentiment
Wall Street closed slightly lower on Thursday amid concerns about higher-than-expected producer prices in November. The Dow Jones Industrial Average was down 0.53 percent, the S&P 500 was down 0.54 percent, and the Nasdaq was down 0.66 percent. Initial jobless claims rose unexpectedly, adding to concerns about the strength of the labor market ahead of next week’s Federal Reserve meeting.
Asian markets are tracking Wall Street’s losses
Asian stocks also saw declines, with Japan’s Topix down 0.7 percent, Australia’s S&P/ASX 200 down 0.6 percent, and Hang Seng futures showing a 1.2 percent fall. The cautious stance reflects global concerns about inflation and financial stability.
Technical outlook: Range-bound movement continues
Nifty remains in consolidation phase, with support at 24,470 and resistance at 24,650-24,700 levels. A decisive move below support could trigger a further correction. India VIX, a measure of market volatility, was reduced by 0.58 percent to 13.19, reflecting investors’ fears.
Stocks on F&O ban
Six stocks are under F&O ban today: Granules, Manappuram, Metropolis, PVR Inox, RBL Bank, and Hindustan Copper. These securities exceeded 95 percent of the overall market cap.
Rupee at record low
The Indian rupee depreciated five times to 84.88 against the US dollar on Thursday, weighed down by weak domestic markets, foreign currency outflows, and higher crude oil prices.
FII/DII activity
Foreign portfolio investors were the biggest sellers on Thursday, offloading shares worth Rs 3,560 crore. Domestic institutional investors provided relief by buying shares worth Rs 2,646 crore.
Trading strategy
Traders should remain vigilant, focus on industry opportunities, especially banking and IT, while monitoring global indicators carefully.
