GIFT Nifty futures hint at cautious start; Nifty faces resistance at 23,000

GIFT Nifty traded around 23,010 in early deals, signalling a muted opening for domestic equities. Weak global cues and sector-specific trends may guide market action today.

Indian markets closed lower on Tuesday, with the Nifty settling at 22,945, down 14 points, and the Sensex slipping 29 points to 75,967. Banking, auto, and FMCG stocks weighed on sentiment, extending the recent losing streak.

Technical outlook

Nifty continues to face resistance at 23,000, while support is seen at 22,800. Analysts suggest that a decisive move above 23,150 could signal strength, while a dip below support may lead to further selling pressure.

Volatility index

India VIX, a measure of market volatility, eased 0.36 per cent to 15.67, reflecting subdued trader sentiment ahead of key domestic and global triggers.

FII/DII activity

Foreign institutional investors (FIIs) were net buyers of Rs 3,072 crore on Tuesday, while domestic institutional investors (DIIs) bought Rs 4,786 crore worth of equities, helping cushion market losses.

Rupee and global markets

The rupee weakened by 8 paise to close at 86.96 against the US dollar, pressured by foreign outflows and a rising dollar index, which stood at 106.95. Asian markets showed mixed trends, with caution prevailing amid inflation concerns in the US.

What to watch

Traders should track global trends, crude oil movement, and institutional flows for cues. Stock-specific action may dominate amid ongoing earnings season and sectoral rotation.