Pre-sale settings (June 18): Gift nifty is reduced by 30 points; D Street may open in red

Stock markets are expected to open on Wednesday, tracking weakness in global markets and shrinking clues from gift nifty. Ongoing geopolitical tensions between Israel and Iran, coupled with caution before the U.S. Federal Reserve’s policy decision, could put investors on the edge.

Gift nifty on NSE IX fell 30 points or 0.12% at 24,833, indicating that the benchmark index starts to be mild. On Tuesday, the Nifty50’s drop was 93 points to 24,853.40, while Sensex scored 213 points to 81,583.30.

Technical View

Due to conflicting technical signals, market participants expect Nifty to remain narrow in the near term. Analysts believe that under 24,850 people may intensify bearish sentiment, while 25,000 people remain a strong resistance zone.

The Indian VIX is a key measure of market volatility – down 2.9% to settle at the 14.40 level, indicating a slightly softer fear level.

Global Market

The U.S. index closed in the red Tuesday as investors feared the intensified Middle East conflict. The Dow Jones fell 0.7%, the S&P 500 fell 0.8%, and Nasdaq fell 0.9%. Reports show that the U.S. military has moved more fighter jets to the area due to concerns about further escalation.

Asian markets are lower along Wall Street

Most Asian markets traded weakly in the early hours, reflecting overnight losses in U.S. stocks. Hang Seng Futures fell 0.7%, Australia’s S&P/ASX 200 fell 0.1%, and Euro Stoxx 50 futures fell 0.9%. The Topix in Japan remains flat.

Gold remains stable, oil continues to rise

Gold prices remain firm and supported by the need for shelter from geopolitical issues. However, earnings were limited due to the dollar before the Fed’s decision. Oil prices have been getting higher after rising more than 4% on Tuesday amid concerns about supply disruptions.

F&O Ban List

Today, the following stocks are under the F&O ban:

• IREDA

• CDSL

• Abfrl

• Chambal fertilizer

• Hudco

• RBL Bank

• Titagarh

• Birlasoft

Rupee under pressure

The Indian Rupee was weakened by 30 Paise, at $86.34 against the dollar, while crude oil prices rose and the strength of the dollar decreased.

FII-DII flow

Foreign Institutional Investors (FIIS) remained a net seller on Tuesday, unloading shares worth Rs 1,483 crore. On the other hand, domestic institutional investors (DIIS) networks have purchased shares worth Rs 822 crore.

Derivative Tool Updates

FII’s position in index futures shows signs of bearish bets, with net shorts down from Rs 1.01 crore on Monday to Rs 99,483 crore on Tuesday.

With the Fed’s ruling expected tonight later tonight, and the Israel-Iran conflict intensifies, traders should have volatility effects in the day.