Gift Nifty Signals Positive Start Today: Will Nifty Break Its 4-Day Losing Streak?

The Gift Nifty was trading 88 points, or 0.37 per cent, higher at 24,020.5 around 7:26 am on Friday, signalling a positive start for Indian equity markets. It comes after Wall Street rallied overnight and Asian markets traded higher this morning.

The global backdrop improved after a senior US Federal Reserve official indicated support for keeping interest rates unchanged this month, leading investors to pare back expectations of further rate hikes. Treasury yields moved lower, while the US dollar weakened.

“Indian equities are set for a positive start on Friday, with GIFT Nifty trading about 120 points higher, setting the stage for a positive opening,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth. However, the GIFT Nifty premium

stood at 88 points as of 7:26 am.

South Korea’s Kospi (up 1%) and Japan’s Nikkei (up 0.5%) were among the leading gainers in Asia, while crude oil prices remained broadly stable. Investors will now focus on the US non-farm payrolls report due later today. A jobs report in line with or weaker than expectations could strengthen the case for the Federal Reserve to keep rates unchanged this month, while a stronger-than-expected reading could revive concerns over further policy tightening.

Domestic market internals also remain supportive. Foreign institutional investors were modest net sellers in the previous session, while domestic institutions bought more than twice the amount sold by foreign investors. This provided support to the market even as the Sensex and Nifty came under selling pressure late in the session.

On Thursday, the Sensex fell 417.49 points, or 0.55 per cent, to close at 76,152.86, while the Nifty declined 41 points, or 0.17 per cent, to settle at 23,873.45. Both benchmarks came under pressure towards the end of the session, extending their losing streak to four sessions.

From a technical perspective, Radhakrishnan said the Nifty has preserved Wednesday’s hammer reversal pattern, with 23,786 emerging as a key validation level. The 23,800 level continues to offer strong Put support, while heavy Call writing is seen in the 24,000-24,200 zone.

“With GIFT Nifty’s premium placing the index near the 24,000 mark at the open, it is likely to enter the key resistance band and the descending trendline from the opening bell,” he said. The first hour of trade could therefore be crucial in determining whether the recent recovery gains momentum or faces renewed selling pressure.

Bank Nifty, which gained 208 points on Thursday, continues to find immediate support at 57,000, with 57,500 acting as the first resistance and 58,000 as the key breakout level. India VIX at 11.31 indicates that volatility remains relatively contained.

Brent crude, meanwhile, was trading around $95.90 a barrel and has struggled to sustain levels above $96, keeping the $97-99 zone as the next major resistance area.

Ponmudi R, CEO of Enrich Money, a Sebi-registered online trading and wealth-tech firm, said, “Indian markets are expected to begin the session on a firmer footing, supported by Wall Street’s overnight rebound and gains across Asian equities as easing global bond yields provide some relief to risk assets. US Treasury yields retreated after Federal Reserve Governor Christopher Waller suggested that another rate hike may not be necessary if upcoming inflation data remains moderate. Even so, Friday’s US nonfarm payrolls report remains the week’s key macro event and is expected to shape expectations for the Federal Reserve’s policy path.”

However, with geopolitical uncertainty persisting and crude oil prices holding at elevated levels, investors may remain reluctant to carry aggressive positions into the weekend, potentially limiting upside and prompting some profit-taking at higher levels, Ponmudi added.