Pre Market Setup (May 19): GIFT Nifty futures slip 15 pts; D-street likely to open flat

Indian markets are set for a muted start to the week, with GIFT Nifty slipping 15 points or 0.06 per cent to 25,074 in early trade, mirroring weak cues from Asian peers and subdued US futures. After a strong rally last week, the broader market sentiment is still constructive, supported by easing geopolitical tensions, improving trade ties, and resilient domestic macro indicators.

Key levels to watch

On the technical front, Nifty bulls may look to buy the dip as long as the index holds above 25,000. A breach below 24,800 may trigger mild profit booking. On the upside, a move past 25,120 can lift the benchmark towards 25,250–25,350 levels. Market experts maintain a cautiously bullish outlook as long as volatility remains contained.

India VIX cooled off further by 2.03 per cent, settling at 16.55, indicating lower fear in the market ahead of key economic events.

Wall Street rallies, Asia under pressure

US markets ended Friday higher for the fifth straight session, aided by the temporary easing of trade tensions between the US and China. However, investor sentiment took a hit after a surprise downgrade in the US credit rating to Aa1 from Aaa, dragging down US futures early Monday.

Asian markets were largely in the red:

• Japan’s Topix fell 0.2%

• Australia’s ASX 200 dipped 0.2%

• South Korea’s KOSPI opened weak

• S&P 500 futures dropped 0.7%

Meanwhile, Euro Stoxx 50 futures showed slight strength, gaining 0.3%.

Commodities action

Crude oil remained range-bound as markets await developments in US-Iran nuclear talks and fresh data from China. On the other hand, gold rose over 1 per cent, buoyed by safe-haven demand amid a weakening US dollar and renewed tariff threats from Washington.

F&O ban list

The following stocks are in the F&O ban list for Monday’s session due to crossing 95 per cent of the market-wide position limit:

• Titagarh Wagons

• Manappuram

• Hindustan Copper

Strong FII inflows continue; rupee under slight pressure

Foreign institutional investors (FIIs) extended their buying spree, pumping in Rs 8,831 crore on Friday. Domestic institutional investors (DIIs) also bought shares worth Rs 5,187 crore. Despite robust capital inflows, the rupee weakened by 3 paise to close at 85.57 against the US dollar, dragged down by higher crude prices and cautious equity moves.

FIIs increased their net short positions in index futures, moving from Rs 13,521 crore on Thursday to Rs 23,325 crore on Friday — a signal that traders are hedging against short-term volatility despite the broader optimism.