Pre Market Analysis: GIFT Nifty futures up 10 pts; markets likely to open flat

Indian stock markets are set for a muted to positive opening on Tuesday, April 29, as GIFT Nifty futures climbed 10 points to 24,476.50 in early trade. The cautious tone reflects the balancing act between strong corporate earnings and global macro uncertainties.

On Monday, the benchmark indices rallied sharply, buoyed by strong results from heavyweights like Reliance Industries and a lack of negative developments on the India-Pakistan front. Foreign investors turned net buyers, and the rupee strengthened against the US dollar, further lifting market sentiment.

GIFT Nifty futures on NSE IX indicated a muted but positive bias, trading 7 points higher, or 0.03 per cent up, hinting that Dalal Street might see some consolidation after Monday’s rally. Analysts expect stock-specific action to dominate as companies continue to post Q4 results.

Technical charts suggest that the Nifty’s recent rally could extend if buying interest sustains. Immediate support lies near the 200-day Simple Moving Average (SMA), reinforcing a buy-on-dips strategy. The next key resistance is seen around 24,550 levels, which also coincides with the 61.8 per cent Fibonacci retracement from the previous fall.

India VIX, the volatility index, cooled off by 1.3 per cent to 16.94 levels, indicating that traders are less fearful about sharp market swings in the immediate term. A lower VIX often supports a steady upward bias.

Wall Street ended a choppy session mostly unchanged overnight. The Dow Jones rose 0.28 per cent, the S&P 500 edged up 0.06 per cent, while the Nasdaq slipped 0.1 per cent. Investors remain cautious ahead of key earnings and economic data releases in the US.

Asian shares opened on a cautious note. Australia's ASX 200 rose 0.5 per cent, Hang Seng futures were up 0.1 per cent, while S&P 500 futures showed little change in early Tokyo trading. Investors are eyeing regional earnings and macro updates closely.

Gold prices slipped as easing trade tensions dented safe-haven demand. Meanwhile, crude oil prices also fell, dragged by lowered demand expectations amid the lingering US-China trade war.

On Monday, foreign portfolio investors (FPIs) were net buyers to the tune of Rs 2,474 crore. Meanwhile, domestic institutional investors (DIIs) booked profits, selling shares worth Rs 2,818 crore.

The Indian rupee closed 18 paise higher at 85.23 against the US dollar, supported by strong foreign inflows, softer crude oil prices, and positive domestic equities.

There are no securities under the F&O ban list today. Traders can expect smoother action in the derivatives segment.

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