GIFT Nifty traded down 62.5 points at 23,944.50, reflecting a negative opening for Indian equities. Market conditions remain fragile after the Federal Reserve’s hawkish outlook on interest rates, which could weigh on global risk appetite.
A technical perspective
Nifty index has immediate support at 23,850. Violations below this level may trigger additional corrections. On the other hand, resistance is set at 24,200, which suggests limited room for recovery unless strong buying occurs in key sectors.
India VIX and F&O barring stocks
India VIX rose 0.96 percent, closing at 14.51, indicating higher market volatility. Stocks under the F&O ban include Granules, Manappuram, PVR Inox, SAIL, Bandhan Bank, Hindustan Copper, and NMDC, as they have crossed 95 percent of the overall market position limit.
Earth signs are always mixed
US markets ended mostly lower after the Federal Reserve predicted fewer rate cuts in 2025 and pointed to continued risks of inflation. The Dow rose 0.04 percent, while the S&P and Nasdaq were down 0.09 percent and 0.10 percent, respectively.
Asian markets echoed this cautious sentiment. Nikkei 225 and Hang Seng futures were down 0.2 percent and 0.3 percent, while Australia’s S&P/ASX 200 was down 0.4 percent in early trade.
Rupee under pressure
The rupee hit a new record, closing at 85.08 against the US dollar, reflecting the strength of the global dollar and foreign fund outflows.
FII/DII activity
Foreign institutional investors sold shares worth Rs 4,224 crore on Thursday, marking a total sell-off. Domestic institutional investors followed suit, withdrawing Rs 3,943 crore.
Key focus areas
Traders will monitor Personal Consumption Expenditure (PCE) data from the US, which could provide additional direction to global markets. Gold prices have weakened this week, reflecting investor caution amid rising dollar strength.
