GIFT Nifty futures decline over 40 points; markets likely to open on a muted note

GIFT Nifty traded lower by 44 points at 22,916, indicating a negative opening for Indian equity markets on Thursday. The benchmark Nifty 50 has been struggling to sustain above the 23,000 level, despite taking support near 22,800 multiple times. If global cues remain stable, the index may attempt another breakout in the coming sessions.

Market trends and technical setup
Nifty 50 is currently trading below its key resistance zone at 23,000, while Bank Nifty has maintained its position above 49,500. The immediate support for Bank Nifty stands at 49,000. India VIX, the volatility index, eased by 1.6 per cent to 15.42, indicating reduced fear among investors. Market participants remain cautious amid ongoing uncertainty, preferring a stock-specific approach focusing on resilient sectors.

Wall Street ends higher
US stock markets ended on a positive note on Wednesday. The S&P 500 closed at an all-time high for the second consecutive session, supported by investor optimism despite mixed signals from the Federal Reserve’s January meeting minutes. Key indices closed as follows:

• Dow Jones Industrial Average: +0.16 per cent
• S&P 500: +0.24 per cent
• Nasdaq Composite: +0.07 per cent

Asian markets trade lower
Asian equities slipped on Thursday as investors reacted to the Fed’s stance on interest rates and uncertainty surrounding global trade policies. Key indices in early trade:

• Hang Seng futures: -0.8 per cent
• S&P/ASX 200: -0.7 per cent
• S&P 500 futures: Flat

Commodity watch: Gold rises
Gold prices edged higher, trading near all-time highs, as investors sought safe-haven assets amid concerns over US trade policies. Market sentiment remains cautious, with inflation fears adding to the bullish outlook for gold.

F&O ban list
One stock remains in the Futures & Options (F&O) ban list for Thursday’s session:

• Manappuram Finance
  Securities enter the ban period when open interest surpasses 95 per cent of the market-wide position limit.

Institutional activity and rupee movement
Foreign institutional investors (FIIs) were net sellers, offloading shares worth Rs 1,881 crore on Wednesday, while domestic institutional investors (DIIs) purchased stocks worth Rs 1,957 crore. Meanwhile, the Indian rupee weakened slightly, closing 0.06 per cent lower at 86.85 against the US dollar amid volatility in domestic equity markets.

Outlook for the day
With GIFT Nifty indicating a negative opening and global markets trading lower, investors may remain cautious in early trade. The focus will be on stock-specific movements, with key levels in Nifty and Bank Nifty being closely monitored. Market sentiment is expected to remain volatile as traders react to global economic cues and institutional fund flows.