Pre Market Setup (June 2): GIFT Nifty up 40 pts; markets likely to open in green amid DII support and GDP optimism sensex nifty, market open

GIFT Nifty hints at positive start, but global cues keep traders cautious

Indian markets are likely to open on a firm note on Monday, June 2, supported by a positive trend in GIFT Nifty and upbeat domestic fundamentals. At 6:50 am, GIFT Nifty traded 40 points higher at 24,877, hinting at a mildly optimistic start to the week. However, weak global cues and selling pressure from foreign investors may cap gains on Dalal Street.

Key levels to watch: Nifty at resistance; support at 24,700

According to technical analysts, the Nifty has been facing resistance near the 24,800 mark, where heavy call writing has been seen. On the downside, immediate support is placed at 24,700. A breach of this level could trigger further weakness toward 24,500. Analysts recommend a stock-specific approach in today’s trade, with a close eye on volatility and institutional flows.

Volatility eases, India VIX falls below 16.10

India VIX, the volatility gauge, dropped 2.09 per cent to close at 16.08 on Friday, signaling a temporary cool-off in trader nervousness. This drop comes despite global headwinds, hinting that the domestic market still finds comfort in the macro setup—especially after the strong GDP print and expectations of an RBI rate cut.

Global market pressure: Asian equities slip as trade tensions flare

Asian markets were mostly lower in early Monday trade. Japan’s Topix dropped 0.8 per cent, while S&P 500 futures slid 0.3 per cent. Investors turned cautious amid renewed US-China trade tensions. The Euro Stoxx 50 futures and Australia's ASX 200 were largely flat, reflecting mixed investor sentiment.

Crude oil rebounds; dollar weakens

Oil prices bounced back over $1 per barrel in early Asian trade after OPEC+ agreed to raise output in July in line with prior hikes. Meanwhile, the US dollar weakened slightly as markets reassessed the impact of US tariff policies on inflation and growth.

FIIs net sellers, DIIs step up buying

On Friday, foreign institutional investors (FIIs) offloaded shares worth Rs 6,450 crore, extending their selling spree. However, domestic institutional investors (DIIs) provided strong support with net purchases worth Rs 9,096 crore, reflecting continued local confidence.

Rupee slips as crude rises

The Indian rupee closed at 85.55 per US dollar, down 7 paise. Rising crude oil prices and equity volatility pressured the local currency despite early gains.

F&O ban list: Manappuram under restrictions

Manappuram is the only stock under the F&O ban today. This happens when open interest in a stock crosses 95 per cent of the market-wide position limit.

Outlook: Cautious optimism

While GIFT Nifty indicates a green start, market participants are expected to remain cautious ahead of key global data and RBI policy cues later this week. Investors should monitor global developments, FII flows, and crude price trends for near-term direction.