Pre-Market Setup (June 9): GIFT Nifty futures up 70 pts; D-Street likely to open higher

Indian markets are set to open on a firm note on Monday, June 9, tracking gains in GIFT Nifty futures and positive global sentiment. The GIFT Nifty was up 71 points or 0.29 per cent at 25,169.50 in early trade, hinting at a gap-up start for benchmark indices.

Technical View

Markets have been consolidating for three straight weeks but closed the previous week higher by nearly 1 per cent, buoyed by strong domestic triggers. Technically, a decisive close above 25,200 could set off the next leg of the rally, potentially pushing the Nifty toward the 25,600–25,800 zone. On the downside, 24,400–24,600 is expected to offer strong support.

India VIX, the market’s volatility gauge, cooled off by 3 per cent to 14.63 reflecting easing fear levels among traders.

Global cues: Wall Street, Asia buoyant; dollar steady

US markets ended Friday with strong gains as non-farm payroll data came in better than expected, with Tesla leading the tech rebound. Asian equities were trading higher in early Monday trade, supported by the possibility of resumed US-China trade talks in London.

Japan’s Topix gained 0.7%, while Euro Stoxx 50 futures were up 0.3%. Meanwhile, S&P 500 futures were largely flat during early Tokyo hours.

The US dollar remained steady against major currencies, while gold prices slipped as risk-on sentiment weighed on safe-haven demand. Brent crude hovered around $66.47 a barrel, while WTI crude held at $64.59.

FIIs, DIIs remain net buyers; rupee strengthens post rate cut

Foreign investors turned net buyers on Friday, purchasing equities worth Rs 1,010 crore. Domestic institutional investors (DIIs) were also net buyers to the tune of Rs 9,342 crore.

In the currency market, the rupee appreciated by 11 paise to close at 85.68 against the US dollar, boosted by the Reserve Bank’s surprise 50 basis point repo rate cut aimed at supporting growth.

FIIs also increased their futures market exposure, cutting their net short position from Rs 1.06 lakh crore to Rs 92,600 crore a sentiment shift worth noting.

Stocks in F&O ban

The F&O ban list for today includes Manappuram, ABFRL, and Chambal Fertilisers, as their open interest crossed 95 per cent of the market-wide position limit.