Gift Nifty signals positive start; here’s trading setup for the day

Indian equities consolidated on Wednesday, a day after its rally on the back of the India-US trade deal, as investors await further clarity on the agreement and look forward to RBI’s interest rate decision due on Friday. Analysts expect Indian markets to remain firm with positive bias, with sector/stock specific action, driven by recent trade deals (US and EU), Union Budget announcements and the ongoing Q3 earnings season.

STATE OF THE MARKETS

Gift Nifty (Earlier SGX Nifty) signals a positive start

Nifty futures on the Gift Nifty traded 27 pts higher at 25,864.

Tech View: Overall, the structure for the Nifty appears positive for 26,100 levels, and a buy-on-dips approach remains advisable as long as Nifty holds above 25,250.

India VIX: India VIX, which is a measure of the fear in the markets, fell 5% to settle at 12.25 levels.
Global Markets

• S&P 500 futures rose 0.3% as of 9:25 a.m. Tokyo time
• Hang Seng futures fell 1.2%
• Japan’s Topix rose 0.4%
• Australia’s S&P/ASX 200 fell 0.2%
• Euro Stoxx 50 futures fell 0.1%

US equities
U.S. equities closed lower on Wednesday, dragged down by declines in Advanced Micro Devices, Palantir and other tech names, as investors fretted over stretched valuations and questioned the durability of Wall Street’s AI-driven rally. Alphabet slid nearly 2% ahead of its quarterly earnings release, but rebounded about 2% in after-hours trade after the company said it was sharply increasing spending to step up its push in the AI race.

Forex News

• The euro was little changed at $1.1802
• The Japanese yen was little changed at 156.95 per dollar
• The offshore yuan was little changed at 6.9388 per dollar
• The Australian dollar was little changed at $0.7001

Stocks in F&O ban today

Sammaan Capital

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

FII/DII action

Foreign portfolio investors net bought shares worth Rs 30 crore on Wednesday. DIIs, meanwhile, were net buyers at Rs 240 crore.

Rupee

The rupee depreciated 15 paise to 90.47 against the US dollar on Wednesday, after a sharp rally in the previous trading session following India-US trade deal announcement, on suspected dollar buying by corporates and importers.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)