Pre-Market Report: Positive Start on the Cards as GIFT Nifty Trades Above 22,640 on Resilient Global Cues

Global Market Cues

Overnight sentiment across global equities maintained a constructive tone, offering steady tailwinds for broader risk assets. On Wall Street, benchmark indices like the S&P 500 and the tech-heavy Nasdaq pushed higher, buoyed by softer-than-anticipated labor market data that helped temper aggressive rate hike concerns and renewed optimism around monetary policy trajectory.

Asian markets traded with notable gains in early deals on Tuesday morning, extending the momentum from the US session. However, market participants continue to keep a watchful eye on energy markets and sovereign bond yields, as crude oil fluctuations and foreign institutional flows remain key variables in guiding broader market risk appetite.

GIFT Nifty and Domestic Cues

Indicating a positive start for domestic equities, the GIFT Nifty was trading at 22,647.50, up approximately 0.32% or over 70 points against its previous settlement of 22,576.

This builds directly upon the strength witnessed during Monday's trading session, where the benchmark BSE Sensex surged 472.77 points (0.65%) to end at 72,382.47, while the NSE Nifty 50 advanced 133.80 points (0.60%) to settle at 22,555.75. From a technical standpoint:

• Support Levels: Immediate downside support for Nifty 50 is pegged around 22,480–22,500, followed by stronger support near 22,350.
• Resistance Levels: Crucial resistance stands in the 22,680–22,720 range, a decisive breakout above which could extend gains towards the 22,800 threshold.

Key Stocks in Focus

A number of active counters and sectors are likely to see heightened trading interest during the session:

• HDFC Bank & ICICI Bank: Major private banking names will remain in focus following active participation and divergence in previous sessions, as banking indices steer broader index direction.
• Bajaj Finance & Shriram Finance: Non-banking financial companies (NBFCs) demonstrated sustained buying momentum and will be tracked for continued breakout moves.
• ITC & FMCG Heavyweights: Fast-moving consumer goods majors rallied in the prior session, driving defensive and consumption-oriented portfolios higher.
• BSE Limited: Shares gained over 4% on Monday and continue to witness heavy trading volumes amid elevated market participation.
• Auto Stocks: Auto majors are likely to witness stock-specific action as investors absorb the resilience shown in the recent monthly auto sales print.

Key Events to Watch Today

Market participants will track several domestic and international data points and policy signals throughout Tuesday:

• RBI Monetary Policy Expectations: Markets are actively pricing in forward guidance and expectations surrounding the Reserve Bank of India's rate trajectory ahead of upcoming policy decisions.
• FII/DII Investment Flows: Institutional trading activity remains a pivotal driver, with traders monitoring whether domestic institutional buying continues to offset foreign portfolio outflows.
• Global Macroeconomic Releases: US economic commentary, energy inventory reports, and foreign exchange movements will guide global sentiment heading into the European trading session.

Tags: Pre-Market Stock Market Nifty Sensex Market Update