Pre-market setting (June 5): Gift nifty Futures up 10 points; in case of global caution, the market may be open

Indian stocks are expected to open on Thursday, June 5 with flat to slightly positive instructions, which is a nice gift for futures, up 14 points or 0.06% in 24,730. This marks a moderately optimistic start to the benchmark index, where traders may focus on stock-specific actions in an integrated market setting.

At the last session, there were trivial gains in the market and received positive global tips, but analysts maintained a cautious tone. The wider market remains integrated, driven by macroeconomic uncertainty, weak global data printing and expectations surrounding central bank migration. Traders may remain selective until the upcoming economic issuance and Fed comments.

Technical perspective

From a technical point of view, the bearish cross signal of the RSI (Relative Strength Index) momentum oscillator gradually disappears, which means that the index may face limited upside in the near future. Analysts get support for Nifty immediately at 24,500; violating this could lead to further declines. On the rise, the resistance is in the 24,750 and 24,900 tiers.

Indian VIX Cooling; Easy Volatility

India’s VIX (recent volatility) fell 4.9% to close 15.74 on Wednesday, reflecting a drop in fear in the market. This decline in volatility may support intraday stability, especially in larger indexes.

Global Market

The U.S. market ended overnight. The Dow Jones industrial average fell 0.22%, while the Nasdaq rose 0.32%, and the S&P 500 remained largely flat. Sentiment is affected by soft economic data, which has heightened expectations of the Federal Reserve to lower interest rates.

Asian markets were open cautiously this morning:

• Japan’s topix fell 0.6%

• Australia’s ASX 200 rises 0.2%

• Hang Seng Futures rises 0.5%

• EURO STOXX 50 futures are largely flat

S&P 500-year futures remain unchanged at 9:43 am Tokyo time.

commodity

Gold prices are getting higher and higher due to weak U.S. data. Meanwhile, crude oil slipped in early trade, and was hit by rising U.S. gasoline and diesel inventories and lower prices of Saudi Arabia in Asia.

F&O Ban List

Aditya Birla Fashion & Retail (ABFRL)
Manappuram’s finances remained under the F&O ban on Thursday after exceeding the 95% limit within the market.

Institutional flow

Foreign Institutional Investors (FIIS) remained a net seller on Wednesday, with shares selling shares worth Rs 1,076 crore, according to interim data. On the other hand, domestic institutional investors (DIIS) are net buyers at a price of Rs 25.67 crore, providing some buffering for the market.

In addition, FII shortened their short-term positions in index futures, reducing net shorts from Rs 104 crore to Rs 102 crore.

Currency watch

Rs extends the failed winning streak for the next day, 85.90 per USD (temporary). Avoid risk and consistent FPI outflows weight on the local currency.

Market prospects

The market may continue to trade in scope, global development, FII liquidity and technical level as key triggers. Traders are advised to stay agile for stop loss, especially without a strong direction prompt.