Pre Market Setup (June 16): GIFT Nifty futures up 40 pts; markets likely to open in green amid global recovery, oil rally

Crude, gold rally on West Asia conflict; FIIs net short in futures despite heavy DII buying

Indian equity markets are set to open higher on Monday, June 16, tracking a rebound in Asian markets and a mild uptick in US futures, even as geopolitical tensions in the Middle East and rising crude oil prices remain a major overhang.

GIFT Nifty signals positive start

GIFT Nifty on the NSE IX was up 38 points or 0.15 per cent at 24,778.50 in early trade, indicating a mildly positive start for benchmark indices on Dalal Street. This comes after the Nifty 50 and Sensex witnessed a sharp decline on Friday following Israel’s military strikes on Iran, which spooked global markets.

Global cues mixed; oil and gold surge

Asian shares bounced back on Monday, with Japan’s Topix gaining 0.8 per cent and Australia’s ASX200 up 0.3 per cent. However, Hong Kong’s Hang Seng continued to slide for the third straight session, down 0.5 per cent. US S&P 500 futures rose 0.1 per cent.

Brent crude futures climbed further as fresh Israeli and Iranian attacks over the weekend pushed oil closer to USD 85 per barrel. Gold too edged up, nearing a two-month high as risk-averse investors rushed to safe-haven assets amid fears of a broader regional conflict.

Key levels to watch on Nifty

According to analysts, Nifty’s recovery will gain traction only if it sustains above 24,700. A break below that could attract fresh short positions. On the upside, the index could attempt to reclaim the psychological 25,000 mark in the short term.

India VIX, the volatility index, surged 7.6 per cent to 15.08, signalling rising investor nervousness.

FII/DII flows diverge

Foreign institutional investors (FIIs) continued to exit Indian equities, selling shares worth Rs 1,263 crore on Friday. However, domestic institutional investors (DIIs) remained net buyers with Rs 3,041 crore of inflows.

In the futures segment, FIIs added to their short positions, with net shorts rising from Rs 99,478 crore to Rs 1.04 lakh crore on Friday.

Rupee, F&O watchlist

The Indian Rupee plunged 59 paise to 86.11 per US dollar on Friday, pressured by strong crude prices and geopolitical risks.

Stocks in the F&O ban list today include IREDA, CDSL, ABFRL, Chambal Fertilisers, Hindustan Copper, RBL Bank, Titagarh, IEX, and Birlasoft.

Markets may remain volatile amid global cues, with stock-specific action expected to dominate intraday movements.