GIFT Nifty Signals Muted Start; Markets to Monitor Global Cues and RBI Policy Trends

On Tuesday, domestic markets managed to extend their winning streak for the third consecutive session, buoyed by a notable rise of 181 points in the Nifty index. This increase was primarily supported by optimism surrounding government spending and the anticipation of favourable monetary policy adjustments from the Reserve Bank of India (RBI). Analysts believe that this upward momentum could continue in the short term, as long as the global cues remain positive.

Pre-Market Setup

Subdued Opening Signals from GIFT Nifty
The GIFT Nifty, which has replaced the SGX Nifty, indicated a decrease of 27.50 points, trading at 24,506. This suggests a cautious opening for the Indian equity market on Wednesday.

Technical Outlook
As long as the Nifty index remains above the 24,400 mark, bullish traders may try to push it towards the 24,600 to 24,700 levels. However, if it dips below 24,400, a correction back to around 24,150 could occur.

Volatility Index
The India VIX, a barometer of market sentiment, fell by 2.23 percent to end at 14.37, indicating a decrease in market apprehension.

Global Market Snapshot

US Markets
In the US, the Nasdaq and S&P 500 closed slightly higher due to gains in technology stocks, while the Dow Jones Industrial Average experienced a small decline.

• Dow: -0.17%

• S&P 500: +0.05%

• Nasdaq: +0.40%

Asian Markets
Asian stock indices were under pressure due to geopolitical tensions in South Korea. Futures for Hang Seng showed a minor downturn of 0.1 percent, and Australia's S&P/ASX 200 index fell by 0.4 percent.

Currency Watch
The Indian rupee recovered slightly from its record low, appreciating by four paise to finish at 84.68 against the US dollar, supported by positive trends in the equity markets.

Key Stocks in Focus

F&O Ban List

• RBL Bank

• Granules

• Manappuram

These stocks are currently on the ban list as they have crossed 95 percent of their market-wide position limit.

Institutional Flows

Foreign institutional investors turned net buyers on Monday, infusing Rs 3,664 crore into the Indian stock markets, while domestic institutional investors sold shares worth Rs 251 crore.

Today's trading will largely depend on global market trends and any updates regarding policy changes from the RBI, which could pave the way for cautious trading.

markets, global, policy