Pre-Market Report: Positive Opening Expected as Global AI Rally and Cooling Oil Fuel Bulls

Global Market Cues

The global backdrop turned significantly positive overnight despite a mixed closing on Wall Street. While the S&P 500 and Nasdaq Composite ended slightly lower by 0.10% and 0.43% respectively on Wednesday, the sentiment shifted drastically after-hours following Micron Technology’s earnings. The chipmaker’s robust sales forecast reignited the AI trade, sending its stock up nearly 15% in extended trading and lifting US tech futures.

In Asia, markets are witnessing a sea of green this morning. South Korea's Kospi surged over 5%, triggering a temporary "sidecar" cooling-off mechanism, while Japan's Nikkei 225 advanced more than 2.3%. A critical tailwind for importers like India is the sharp decline in energy prices; Brent crude tumbled nearly 4% to trade near $73.40 per barrel amid reports of improved shipping through the Strait of Hormuz and a potential US-Iran supply breakthrough.

GIFT Nifty and Domestic Cues

The GIFT Nifty is currently trading at a healthy premium, hovering around the 24,085 mark, suggesting a start for the Nifty 50 well above its previous close of 24,021.65. This positive momentum follows Wednesday's session where the Nifty reclaimed the psychological 24,000 level and the Sensex jumped over 790 points.

Today is the weekly options expiry for the BSE Sensex, which is expected to introduce intraday volatility, particularly around the 77,000–77,200 strike zones. While Foreign Institutional Investors (FIIs) remained net sellers of ₹1,843 crore on Wednesday, Domestic Institutional Investors (DIIs) continued to provide a strong cushion with net purchases of ₹3,637 crore.

Key Stocks in Focus

• Adani Enterprises: The conglomerate is in focus following analyst upgrades and a high-conviction "buy" rating with targets near ₹3,269.
• HDFC Bank: Expected to see activity today as a primary play for the Sensex expiry; analysts have identified upside targets of ₹814–₹825.
• Tata Power: The company received approval for the extension of its Mundra plant operations, which is expected to impact its generation segment positively.
• Ola Electric: Shares may react to news of the company achieving a major milestone in its indigenous battery cell manufacturing.
• IT Stocks (Infosys, Tech Mahindra, HCL Tech): The sector is likely to extend its recovery following the massive rebound in global semiconductor and AI-linked stocks.
• Rashi Peripherals: In focus after announcing a strategic 67% stake acquisition in VDA Infosolutions for ₹3.68 billion.

Key Events to Watch Today

• BSE Sensex Weekly Expiry: Traders should watch for heightened volatility in the final two hours of trade.
• BRICS Energy Ministers' Meeting: India hosts this two-day summit in Gurugram starting today, focusing on energy security and "Energy for All."
• US Economic Data: Markets will keep an eye on US Durable Goods orders and initial jobless claims for further clues on the Fed's interest rate trajectory.
• Summer Davos (WEF): The final day of the Annual Meeting of the New Champions in China will be monitored for global growth commentary.

TAGS: Pre-Market, Stock Market, Nifty, Sensex, Market Update

Tags: Pre-Market Stock Market Nifty Sensex Market Update