Indian benchmark indices will likely open positively on Tuesday, tracking a GIFT Nifty futures that rose by nearly 100 points and steady global cues. Despite some geopolitical jitters and a weak performance on Monday, expectations for a dovish RBI policy and robust domestic macros are likely to lend support.
Global marketÂ
As of 7:00 am, GIFT Nifty futures on NSE IX were trading 96.50 points higher at 24,866.50, indicating a positive start for benchmark indices. Global cues remain mixed with tech-led gains in the US but subdued moves in Asia.
S&P 500 futures were down 0.2% in early Asian trade, while Euro Stoxx 50 futures remained unchanged, indicating cautious optimism ahead of key macro triggers.
Technical view
Analysts state Nifty is still consolidating. The immediate support level is at 24,500-24,550, while bulls will need to cross 25,070 to resume upside momentum. The 20-day EMA near 24,630 will also act as an important floor.Â
The India VIX increased 6.8% to 17.16 on Monday, implying increased volatility prior to the RBI monetary policy meeting.Â
Currency CheckÂ
The rupee closed at 85.39 against the dollar on Monday, appreciating by 16 paise. A weaker dollar and falling US yields have boosted safe-haven gold, now near a four-week high. Oil prices, meanwhile, climbed on supply concerns driven by Canadian wildfires and geopolitical tensions with Iran.
FII-DII flow
Foreign Institutional Investors continued their cautious stance, net selling equities worth Rs 2,589 crore. However, Domestic Institutional Investors provided strong support with net purchases worth Rs 5,314 crore. FII net short positions in index futures rose to Rs 89,066 crore.
Stocks in F&O ban
Manappuram remains in the F&O ban list after crossing 95% of the market-wide position limit.
What to watch today
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RBI monetary policy cues
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Geopolitical developments
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Crude oil and dollar index movement
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Potential breakout levels for Nifty and Bank Nifty
