Pre Market Setup (May 26): GIFT Nifty futures rise 40 pts; D-Street likely to open in green

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Dalal Street is expected to open on a positive note on Monday, May 26, as indicated by GIFT Nifty futures, which rose 40 points to hover near the 24,920-mark. The market tone looks optimistic, supported by favourable global cues, cooling volatility, strong FII inflows, and macroeconomic resilience.

GIFT Nifty on the NSE International Exchange rose 38.5 points or 0.15 per cent to 24,921.50. While this suggests a firm opening, market analysts believe the broader uptrend will only resume once Nifty convincingly moves past the 25,000 mark. Until then, the “buy on dips, sell on rise” strategy remains the preferred approach, especially amid thematic stock outperformance.

Volatility cools down; India VIX dips marginally

India VIX, a key gauge of market volatility, declined 0.12 per cent to 17.28, reflecting lower fear levels among market participants. The subdued VIX suggests range-bound trading with pockets of opportunity in specific sectors.

FIIs turn net buyers; positions still short-heavy in futures

Foreign Institutional Investors (FIIs) continued to show buying interest, pumping in a net Rs 1,794 crore into Indian equities on Friday. Domestic Institutional Investors (DIIs) also bought shares worth Rs 300 crore. In the futures market, FIIs trimmed their net short positions from Rs 55,309 crore to Rs 54,197 crore, indicating marginal sentiment improvement but overall caution.

Global market setup supportive

Asian shares were mostly higher in early Monday trade, taking cues from US and European futures. S&P 500 futures rose 0.9 per cent, while Japan’s Topix gained 0.3 per cent. President Trump’s decision to delay steep tariffs on Europe to July 9 helped soothe global markets.

Oil prices gain, gold retreats

Oil prices edged higher as easing trade war fears bolstered demand outlook. Meanwhile, gold prices slipped from two-week highs as risk sentiment improved.

F&O Ban List

Six stocks are under the F&O ban today: RBL Bank, Manappuram, Dixon, Titagarh Wagons, Chambal Fertilisers, and Dixon Technologies. These scrips breached 95 per cent of the market-wide position limit.