Pre Market Setup (May 2, 2025): GIFT Nifty futures up 35 pts; Markets likely to open on a cautious note

Markets are likely to kick off the May 2 session on a positive note, with GIFT Nifty up by 35 points at 24,429.50, tracking gains in US and Asian peers. This comes after Nifty50 ended flat at 24,334 on Wednesday, as investors preferred to stay on the sidelines amid a busy earnings season. Analysts suggest stock-specific action will remain dominant.

Technical setup: Key support at 24,200; resistance at 24,550
As per technical analysts, the Nifty remains in a consolidation zone. Immediate intraday support lies at 24,200, followed by a robust support band around 24,000–23,800, which coincides with the 200-DMA and earlier breakout levels. On the upside, resistance is seen at 24,550—aligned with the 61.8% retracement from recent highs. A breakout above this could push the index toward the 24,800 mark.

Volatility picks up, VIX spikes 4.9%
India VIX rose nearly 5 per cent to 18.22, hinting at increased volatility ahead of key earnings and global events. Traders are advised to stay cautious and avoid overleveraging.

FII-DII flow
Foreign investors turned marginal net buyers with Rs 50.57 crore of inflow, while domestic institutions remained aggressive, pumping in Rs 1,792 crore—reflecting continued confidence in local equities.

Rupee strength
The Indian rupee appreciated by 42 paise to settle at 84.54 against the US dollar, supported by upbeat sentiment around the US-India trade deal and robust foreign fund inflows.

Wall Street & Asia
US markets extended their winning streak as tech majors Microsoft and Meta delivered strong quarterly results. Dow rose 0.21%, S&P 500 climbed 0.63%. Asian shares followed suit—Japan’s Topix jumped 0.8%, Australia’s ASX 200 gained 0.3%, while China signaled openness to trade talks with the US.

Commodity check
Gold prices slipped as safe-haven demand waned amid improving geopolitical tone and ahead of the crucial US non-farm payrolls data. Meanwhile, the US dollar clocked its third straight weekly gain.

F&O ban list
RBL Bank remains under the F&O ban as it crossed 95% of the market-wide position limit.

Outlook
The broader trend remains sideways as the market digests Q4 earnings and macro data. Experts suggest using dips to accumulate quality stocks while keeping a close eye on global market cues and volatility metrics.

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