GIFT Nifty Declines Amid Focus on Global Trends and Oil Prices

On Thursday, markets are expected to open with caution, as GIFT Nifty dipped by 27 points, settling at 24,518.50. This indicates a subdued start for domestic stocks, driven by weaknesses seen in global markets and an increase in crude oil prices, which may impact investor sentiment.

Key Levels to Monitor

For traders, Nifty is facing immediate support at 24,350, while resistance is likely to be found around 24,700. A significant breakout above this range could set the market's direction for the near term. If the index drops below 24,350, it could worsen market sentiments, whereas a rise past 24,700 might indicate a prospect of sustained upward movement.

Global Market Insights

In the U.S., stocks had a positive session, with the Dow Jones climbing by 0.7 percent, the S&P 500 increasing by 0.6 percent, and the Nasdaq advancing by 1.3 percent. Optimism among investors was fueled by encouraging earnings reports from major technology companies like Salesforce and favorable remarks from Federal Reserve Chair Jerome Powell. Meanwhile, in Asia, Japan’s Topix rose by 0.5 percent, and Australia’s ASX 200 was up by 0.2 percent, while Hang Seng futures saw a decline of 0.8 percent.

F&O Ban Information

As for the futures and options (F&O) market, stocks like RBL Bank, Granules, and Manappuram have been placed on the ban list today, as they have surpassed 95 percent of their market-wide position limits.

Crude Oil and Currency Movements

Crude oil prices have risen as markets await the outcomes of the ongoing OPEC+ meeting, with heightened tensions in the Middle East adding to price volatility. In terms of currency, the Indian rupee has fallen to an all-time low of 84.76 against the U.S. dollar, pressured by rising crude oil prices and a strong dollar.

Foreign and Domestic Investors Activity

Recently, foreign institutional investors (FIIs) were net buyers on Wednesday, injecting Rs 1,797 crore into the stock market. Conversely, domestic institutional investors (DIIs) offloaded shares worth Rs 90 crore.

Market Outlook

Despite witnessing a volatile trading session recently, analysts are predicting that the market may undergo further consolidation soon. Ajit Mishra, Senior Vice President at Religare Broking, suggested that investors pay attention to quality stocks and implement a stock-specific strategy during these intermittent phases.

As markets continue to navigate through uncertain conditions, investors are advised to stay vigilant and keep an eye on global indicators as well as domestic developments.

Nifty, Global, Oil