Pre Market Setup (May 23): GIFT Nifty futures rise 40 pts; hinting at a green start for Sensex, Nifty

Indian markets are likely to kick off Friday's session on a positive note, tracking marginal gains in GIFT Nifty futures and easing global risk aversion. This comes after a volatile session on Thursday when benchmarks corrected on the back of weak US cues and a depreciating rupee.

GIFT Nifty futures on the NSE IX platform were quoting at 24,690.50, up 35.5 points or 0.14 per cent, indicating a mildly positive open for Indian equities. Analysts expect Nifty to remain under pressure unless it decisively crosses the 24,800 mark. Immediate support is seen at 24,445 – the 21-day EMA.

FIIs return as net buyers

In a welcome shift, foreign institutional investors (FIIs) turned net buyers on Thursday, pumping in Rs 5,045 crore into Indian equities. Domestic institutional investors (DIIs) also supported the market with net purchases worth Rs 3,715 crore.

Technical view

The short-term trend remains weak as long as Nifty trades below the 24,800 level. Analysts warn that any upward move may attract selling pressure, and a breach below 24,445 could trigger sharper downside.

India VIX cools down

India VIX, the volatility gauge, declined by 1.65 per cent to 17.26, offering a bit of relief to traders. Lower VIX levels suggest reduced fear in the market but may also hint at complacency ahead of key global events.

Global market snapshot

Wall Street ended largely flat overnight as US Treasury yields eased. Dow and S&P 500 were unchanged while Nasdaq gained 0.28 per cent. In Asia, Japan’s Topix rose 0.5 per cent and Australia’s ASX 200 added 0.2 per cent. However, Euro Stoxx 50 futures slipped 0.6 per cent, reflecting cautious sentiment in Europe.

Rupee under pressure

The Indian rupee closed at 85.95 per dollar on Thursday, down 36 paise, weighed by firm crude oil prices and dollar demand from importers.

F&O ban list

Four stocks—RBL Bank, Manappuram, Dixon, and Titagarh Wagons—are under the F&O ban today after crossing 95 per cent of the market-wide position limit.

Traders are advised to remain stock-specific and follow strict stop losses amid ongoing global uncertainties.