GIFT Nifty Futures Indicate a Cautious Market Opening

The markets are expected to start on a subdued note this Tuesday, as GIFT Nifty futures show a decline of 11 points, settling at 23,760. This movement suggests a flat-to-negative opening for major benchmarks. Analysts recommend exercising caution as key resistance levels remain intact and unchallenged.

Key Levels to Monitor

Important resistance levels are observed between 23,850 and 23,870, with additional challenges presented by a bearish gap ranging from 24,000 to 24,150. Any potential bounce-back below these thresholds may provide an opportunity to reduce long positions. On the downside, immediate support can be found at 23,600 to 23,500, with a breach potentially leading to further corrections toward 23,350.

Market Sentiment Insights

• India VIX: The volatility index has decreased by 10.3%, landing at 13.52, indicating lower market uncertainty.

• FII/DII Activity: Foreign institutional investors sold shares worth ₹168 crore, whereas domestic institutional investors recorded a net purchase of ₹2,228 crore.

Global Market Indicators

• US Markets: Wall Street showed positive gains, with the Dow rising by 0.16%, S&P 500 up by 0.73%, and Nasdaq increasing by 0.98%.

• Asian Markets: Mixed trends were reported, where Hang Seng futures rose by 0.1%, while Japan’s Nikkei 225 futures fell by 0.1%.

• Gold & Dollar: Gold prices remained stable, with the dollar holding strength as investors anticipate that interest rates will remain high for a prolonged period.

Stocks to Watch

• F&O Ban: Stocks such as Granules, Manappuram, Hindustan Copper, Bandhan Bank, and RBL Bank are currently under the F&O ban due to elevated position limits.

• Sectors in Focus: Analysts recommend the pharma and healthcare sectors for potential long positions, while expecting a mix of trends in other segments.

Currency Outlook

The Indian rupee saw a decline, depreciating by 7 paise to close at 85.11 against the US dollar, influenced by a strengthening dollar index following the Federal Reserve's hawkish comments.

Expert Insights

Ajit Mishra, Senior Vice President of Research at Religare Broking, suggests that traders should maintain a negative outlook on market indices until signs of a rebound become evident. He emphasizes focusing on selective opportunities in individual stocks.

As the market sentiment remains cautious, traders are encouraged to stay vigilant and concentrate on sector-specific opportunities.

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