Pre Market Setup: GIFT Nifty futures jump 150 points; markets likely to open on a positive note

Dalal Street is expected to start the new week on a strong footing, with GIFT Nifty futures trading 151 points, or 0.63 per cent higher, at 24,239 early on Monday. The cues come amid a holiday-shortened week where investors will track monthly auto sales numbers, Index of Industrial Production (IIP) data, and the HSBC Manufacturing PMI. However, geopolitical tensions between India and Pakistan remain a key risk factor for market sentiment.

GIFT Nifty, previously known as SGX Nifty, indicated a firm opening for domestic markets, aligning with positive global cues. The breakout zone of 23,800–23,900 continues to provide strong support. A breach below these levels could trigger a correction towards the 23,500–23,300 range. On the upside, immediate resistance is seen near 24,250–24,350 levels.

US markets ended higher on Friday, with investors welcoming corporate earnings and signs of easing U.S.-China trade tensions. Asian markets opened on a cautious but positive note, with Japan’s Topix rising 1.2 per cent, Australia’s S&P/ASX 200 gaining 0.6 per cent, and Hang Seng futures up by 0.2 per cent. Euro Stoxx 50 futures were also in the green, advancing 0.8 per cent.

India VIX jumped 5.6 per cent to settle at 17.16, indicating heightened market volatility. Meanwhile, the rupee closed 8 paise lower at 85.41 per dollar on Friday, weighed by geopolitical concerns and weakness in equities.

Foreign institutional investors (FIIs) turned net buyers on Friday, purchasing equities worth Rs 2,952 crore. In contrast, domestic institutional investors (DIIs) offloaded shares worth Rs 3,539 crore. Net short positions of FIIs reduced from Rs 24,480 crore on Thursday to Rs 35,226 crore on Friday.

Gold prices declined as easing global trade tensions and a stronger dollar reduced safe-haven demand. Meanwhile, crude oil prices inched up but remained capped amid uncertainty over U.S.-China negotiations and potential OPEC+ supply hikes.

There are no stocks under the F&O ban list for today's session. Securities enter the ban list once they cross 95 per cent of the market-wide position limit.

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