Pre-Market Report: Flat-to-Cautious Start Expected as GIFT Nifty Consolidates Around 23,000 Amid Soft Global Cues
Global Market Cues
Major US indices settled moderately lower overnight, primarily dragged down by profit-taking across mega-cap technology and semiconductor shares. The Dow Jones Industrial Average dropped 132.54 points (0.25%) to close at 52,363.56, while the S&P 500 slipped 23.88 points (0.31%) to 7,741.10.
Asian markets traded mostly lower on Friday morning in sympathy with Wall Street's pullback. Japan's Nikkei 225 fell by more than 1.2% to trade near 63,837, while Hong Kong's Hang Seng declined 0.59% to 22,958. In commodity markets, crude oil hovered near elevated levels amid lingering West Asia geopolitical concerns, with Brent crude stabilizing after recent volatility.
GIFT Nifty and Domestic Cues
Signals from the NSE International Exchange (NSE IX) at GIFT City indicate a steady-to-flat opening for Indian equities. The GIFT Nifty traded around the 23,030–23,060 range, indicating mild consolidation after Thursday's sharp run-up where the BSE Sensex jumped over 900 points.
Domestic equities carry tailwinds from the recent monthly expiry rebound, with benchmark indices attempting a sustained move above the psychological 23,000 mark. However, Foreign Institutional Investors (FIIs) remained cautious, recording a net outflow of ₹944 crore in the cash market on Thursday, whereas domestic institutional liquidity provided support to the broader market.
Key Stocks in Focus
- Adani Ports & SEZ: Remains in focus after witnessing strong buying interest and leading large-cap gains during Thursday's trading session.
- IT Stocks (TCS, Infosys, Tech Mahindra): Likely to see selective pressure tracking overnight weakness across US technology and semiconductor heavyweights.
- Trent & Maruti Suzuki: Will be monitored after encountering intraday profit-booking despite broader market strength in the previous session.
- Banking Majors (HDFC Bank, ICICI Bank, SBI): Critical heavyweight counters to watch as Bank Nifty aims to consolidate near resistance levels.
- BSE Ltd: Continues to be in limelight on sustained trading volumes and strength across exchange-related shares.
Key Events to Watch Today
- Global Central Bank Commentary: Investors will watch for subsequent commentary from the European Central Bank and the Bank of Japan following the US Federal Reserve's rate decision.
- Geopolitical Watch: Oil market reactions to geopolitical developments in the Middle East will remain a critical variable for domestic inflation and currency outlooks.
- Institutional Positioning: Follow-through activity by FIIs and DIIs at the start of the new derivatives series will set the tone for market direction.
- Technical Levels: Immediate intraday support for the Nifty 50 is seen around 22,850–22,900, while the 23,050–23,100 zone serves as key immediate resistance.
