Pre Market Set-up (May 28): GIFT Nifty futures trade 10 pts lower; D-Street likely to see flat-to-weak start

​Dalal Street is likely to open on a cautious note on Wednesday, May 28, as GIFT Nifty futures slipped 10 points, tracking mixed global signals and continued volatility in currency and bond markets. As of 7:00 am, the GIFT Nifty on the NSE IX was down 7.5 points, or 0.03 per cent, at 24,854—indicating a flat-to-weak start for benchmark indices.

Global markets

US markets closed sharply higher overnight, with the Nasdaq jumping 2.47 per cent and the S&P 500 rising 2.05 per cent, after upbeat consumer confidence data and signs of easing trade tensions underpinned investor mood. However, Asian markets opened with only mild gains despite Wall Street’s best rally in over two weeks. Japan’s Topix gained 0.6 per cent, while Australia’s ASX 200 added 0.5 per cent. Hang Seng futures edged up just 0.2 per cent, indicating regional caution.

Nifty outlook

Despite Tuesday’s 0.7 per cent slide in the Nifty, technical analysts remain optimistic in the short term. The index is expected to find support around 24,700 while facing resistance near 25,000–25,150 levels. The India VIX, a gauge of market volatility, rose 3 per cent to settle at 18.54—reflecting lingering nervousness.

Currency check

The Indian rupee fell 30 paise to close at 85.40 against the US dollar on Tuesday, snapping a two-day rally. The weakness was driven by a stronger dollar index, foreign outflows, and bearish equity markets. Forex traders expect the rupee to remain under pressure ahead of key US inflation data.

FII/DII flows

Foreign investors were net buyers by Rs 348.45 crore on Friday, while domestic institutional investors (DIIs) pumped in Rs 10,104 crore—offsetting much of the foreign selling. Meanwhile, FII net shorts in index futures widened sharply to Rs 67,419 crore, up from Rs 51,312 crore on Monday, suggesting caution ahead of macroeconomic data.

F&O ban

RBL Bank remains under the F&O ban list today, having breached 95 per cent of the market-wide position limit.

Commodity watch

Gold prices edged higher in early trade, buoyed by softening US bond yields and a weaker dollar. Traders are eyeing the upcoming US core PCE inflation data later this week for clarity on the Federal Reserve’s rate path.

Trading setup summary

With flat global cues, rising volatility, and cautious institutional activity, markets may see range-bound action in early trade. Investors should stay watchful of US inflation data, rupee movement, and global trade headlines for further direction.