Market Insights: Gift Nifty Signals a Muted Start for D-Street

As the trading session begins, the S&P 500 futures remain little changed, while the Hang Seng futures, Japan’s Topix, and Australia’s S&P/ASX 200 have all risen by 0.6%, 1.1%, and 1.1%, respectively. The Euro Stoxx 50 futures have also seen a 1.3% increase.

Domestic markets faced selling pressure on Wednesday, driven by profit booking at higher levels. Today, IT companies will be in focus as bellwether TCS is set to report its first-quarter earnings. According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal, “We expect the market to consolidate in the higher zone and any dip is a buying opportunity for long-term investors. Corporate earnings will start tomorrow with TCS first to announce numbers. Thus, the IT sector is expected to remain in focus.”

Let’s break down the pre-market actions:

The Gift Nifty, earlier known as SGX Nifty, signals a muted start, trading 25 points higher at 24,387. The near-term uptrend status of the market remains intact, but the market seems to have started showing signs of profit booking around 24400-24500 levels. However, a move above 24465 could negate this bearish setup. Immediate support is at 24150 levels, according to Nagaraj Shetti of HDFC Securities.

The India VIX, a measure of market fear, rose 1.07% to settle at 14.43 levels.

In the global market, the dollar saw a slight decline with relatively muted activity as investors awaited a U.S. inflation report later in the day. Meanwhile, the British pound strengthened, reaching its highest level in a month at $1.28545 during early trading in Asia. This increase followed a 0.48% rise from the previous session, prompted by remarks from Bank of England officials that reduced expectations of an interest rate cut in August, leading markets to adjust their forecasts.

Oil prices increased slightly as crude inventories declined following increased processing at U.S. refineries and a decrease in gasoline stocks, indicating heightened demand. Brent futures climbed 35 cents, or 0.4%, to $85.43 per barrel, while U.S. West Texas Intermediate (WTI) crude rose by 36 cents, or 0.5%, reaching $82.47 per barrel.

Some key stocks to watch out for today are:

1. India Cements
2. IEX
3. ABFRL
4. Bandhan Bank
5. PEL
6. GNFC
7. Chambal Fertilisers
8. Indus Tower
9. Balrampur Chini Mills
10. RBL Bank

It’s worth noting that securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Foreign portfolio investors turned net buyers at Rs 583 crore on Wednesday, while domestic institutional investors (DIIs) bought shares worth Rs 1,082 crore. The rupee stayed range-bound and settled 2 paise lower at 83.51 against the US dollar on Wednesday amid rising crude oil prices overseas and selling in domestic equities. The net long of FIIs reduced from Rs 3.85 lakh crore on Tuesday to Rs 3.38 lakh crore on Wednesday.

This information is essential for students preparing for competitive exams, as it provides an overview of the market trends, key stocks, and global economic indicators.

Historical Context:

The article is discussing the pre-market actions and market insights for the Indian stock market, specifically the Nifty 50 index, on a day when IT companies are set to report their earnings. The context is relevant to investors, traders, and students preparing for competitive exams who need to understand market trends, global economic indicators, and key stocks to watch.

The article mentions the S&P 500 futures, Hang Seng futures, Japan’s Topix, and Australia’s S&P/ASX 200, which are all major stock market indices. The Euro Stoxx 50 futures are also mentioned, which is a European stock market index. The article provides information on the Indian rupee’s exchange rate against the US dollar and the net long position of foreign portfolio investors (FPIs) and domestic institutional investors (DIIs).

Summary in Bullet Points:

• The S&P 500 futures remain little changed, while the Hang Seng futures, Japan’s Topix, and Australia’s S&P/ASX 200 have risen by 0.6%, 1.1%, and 1.1%, respectively. • The Euro Stoxx 50 futures have seen a 1.3% increase. • The Gift Nifty signals a muted start, trading 25 points higher at 24,387. • The near-term uptrend status of the market remains intact, but the market seems to have started showing signs of profit booking around 24400-24500 levels. • Immediate support is at 24150 levels, according to Nagaraj Shetti of HDFC Securities. • The India VIX rose 1.07% to settle at 14.43 levels. • The dollar saw a slight decline, while the British pound strengthened, reaching its highest level in a month. • Oil prices increased slightly due to decreased crude inventories and increased processing at U.S. refineries. • Key stocks to watch out for today include India Cements, IEX, ABFRL, Bandhan Bank, PEL, GNFC, Chambal Fertilisers, Indus Tower, Balrampur Chini Mills, and RBL Bank. • Foreign portfolio investors turned net buyers at Rs 583 crore on Wednesday, while DIIs bought shares worth Rs 1,082 crore. • The rupee stayed range-bound and settled 2 paise lower at 83.51 against the US dollar on Wednesday. • The net long of FIIs reduced from Rs 3.85 lakh crore on Tuesday to Rs 3.38 lakh crore on Wednesday.