Pre Market Setup (May 16): GIFT Nifty futures rise nearly 100 pts; markets likely open in green

Indian markets are likely to open higher on Friday, May 16, tracking firm global cues and gains in GIFT Nifty futures, which were up nearly 100 points. After a powerful rebound on Thursday led by index heavyweights Reliance Industries, HDFC Bank and ICICI Bank, sentiment on Dalal Street appears buoyant heading into the weekend session.

Nifty closes above 25,000; eyes 25,200 mark next

The Nifty 50 surged 395 points, or 1.6 per cent, to 25,062.10 on Thursday, reclaiming the crucial 25,000 level for the first time in seven months. The BSE Sensex also ended 1.5 per cent higher at 82,530.74. Analysts suggest that if the index crosses the 25,200 mark decisively, it could rally towards 25,400 and beyond. Immediate support is seen near 24,800.

GIFT Nifty signals strong start for D-Street

Early morning trade on the NSE IX showed GIFT Nifty futures trading 96.5 points higher at 25,175, indicating a gap-up opening for Indian equities. The momentum is expected to be led by auto, IT, metal and banking names, with focus on large caps and high-beta stocks.

FIIs pump in Rs 5,393 crore; VIX cools further

Foreign institutional investors turned aggressive buyers on Thursday, infusing Rs 5,392.94 crore into Indian equities. Domestic institutional investors also added Rs 1,668.47 crore. Meanwhile, the India VIX dropped 1.93 per cent to 16.89, reflecting cooling volatility.

Global cues supportive; oil gains, gold under pressure

Asian markets were mostly higher, led by gains in Australia’s S&P/ASX 200, while Japan’s Topix remained flat. US equities ended mixed, but S&P 500 futures were steady in early Tokyo trade. Crude oil prices edged up, heading for a weekly gain of over 1 per cent. Gold, however, remained under pressure amid a firmer dollar and easing global tensions.

Stocks in F&O ban: CDSL, Hindustan Copper, Manappuram Finance

Traders should avoid initiating new positions in CDSL, Hindustan Copper and Manappuram Finance, which are under the F&O ban for Friday’s session.

Rupee stays volatile near 85.55

The Indian rupee closed at 85.55 against the US dollar, down 0.3 per cent, amid persistent dollar demand and corporate outflows. However, supportive commentary on trade ties with the US helped it recover from intraday lows.

Outlook: Buy on dips with eyes on breakout above 25,200

With key resistance at 25,207 as per Fibonacci retracement levels, traders should watch for a breakout above this zone. Experts recommend a buy-on-dips strategy with selective stock picking in large-cap banks, auto and metals.

Technical levels to watch

• Nifty support: 24,800

• Nifty resistance: 25,207, followed by 25,400

• Sensex resistance: 83,000

• India VIX: 16.89 (downtrend continues)

The stage is set for a potentially strong session with eyes firmly on a breakout above 25,200.