GIFT Nifty futures up barely 6 points; markets may open in a muted way for the better
Indian equity markets are poised for a quiet open on Thursday (January 23, 2025), as indicated by the GIFT Nifty (formerly known as the SGX Nifty), which is trading up nearly 6 points or 0.03 percent at 23,144.5
The Wall Street rally is raising sentiment
Tech stocks fueled a rally in the S&P 500 index – leading it to record highs in overnight trade as optimism surrounding Donald Trump’s Presidency continued to support Wall Street indexes. The S&P 500 index after hitting an intraday record high of 6,100 remained 0.61 percent higher near those levels. The Nasdaq rose more than one percent and returned above the 20,000 mark, while the Dow Jones rallied more than 130 points.
Asian markets are highly traded
The key MSCI Asia ex Japan index traded 0.12 percent weaker at 570.98 as a surprise gain in US markets should fuel an increase in appetite across Asia. However, moderate increases in the dollar index and bond yields may also weigh. However, in early trade as shown by the MSCI index there was mixed volatility with Japan’s Nikkei higher while South Korea’s Kospi and Shanghai Composite indices were in the red. .
Market trends for the previous day
Following Tuesday’s sharp decline, Indian stocks ended the day higher on Wednesday in volatile trading boosted by HDFC Bank’s Q3 earnings which came in better than street estimates. In fact, it was also reflected in broader markets that continued to decline. The Nifty finally managed to finish higher by 0.6 percent at 23,155.
Shares are subject to F&O restrictions
Stocks subject to the F&O ban include companies where derivative contracts exceed 95 percent of the market-wide position limit.
Stocks added to F&O block: IndiaMART InterMESH, Punjab National Bank
Stocks kept from F&O ban: Aditya Birla Fashion & Retail, Bandhan Bank, Can Fin Homes, Dixon Technologies, L&T Finance, Manappuram Finance, Mahanagar Gas, RBL Bank
Stocks removed from F&O ban: Angel One, Kalyan Jewelers
FII/DII activity
Foreign institutional investors (FIIs) were the real sellers on Wednesday, offloading equities worth Rs 4,026 crore from the money market. Domestic institutional investors (DIIs), however, provided some support by buying shares worth Rs 3,640 crore.
A technical perspective
Vatsal Bhuva, Technical Analyst at LKP Securities said, “On Wednesday, the Nifty found support near its previous session low of 22,980 and made a candlestick below the hammer on the daily chart, indicating a possible recovery towards 23,350 levels after Tuesday’s low.” it will appear only if the Nifty closes above 23,500, which is the days EMA 21. Until then, a cautious approach is advised.
Short-term traders can focus on the 23,000-23,350 range, with 23,000 providing strong support and the 23,350-23,400 area serving as key resistance for the indicator, he added.
