Pre Market Setup (May 20): GIFT Nifty futures trade 90 pts higher; signals a strong open for D-Street

Dalal Street is likely to open on a positive note on Tuesday, May 20, with GIFT Nifty futures trading over 90 points higher in early deals. The sentiment follows two sessions of consolidation after last week’s sharp rally, with analysts expecting action in specific sectors and a firm undertone in the broader market.

At 7:00 am, GIFT Nifty futures on the NSE IX were up 92.50 points or 0.37 per cent at 22,081.50, suggesting a gap-up start for benchmark indices. Traders will be watching key earnings today, with Dixon Technologies, Hindalco, Max Healthcare, and Torrent Pharma set to report results.

Technical View

According to technical analysts, Nifty’s ability to sustain above the 25,000 level will be crucial for intraday sentiment. A dip below this mark could trigger a slide to 24,850-24,800, while a breakout could fuel a rally towards 25,100-25,150.

India VIX climbed 4.9 per cent to 17.36, indicating elevated near-term volatility as traders brace for election-related cues and global news flow.

F&O ban list

Three stocks — Titagarh Wagons, Manappuram Finance, and Hindustan Copper — remain in the F&O ban list for Tuesday’s session as they have crossed 95 per cent of the market-wide position limit. Traders are advised to exercise caution in these counters.

FIIs and DII

Foreign institutional investors (FIIs) net bought equities worth Rs 526 crore on Monday, while domestic institutional investors (DIIs) were also net buyers at Rs 238 crore. In index futures, however, FIIs maintained a near-flat stance, moving from Rs 23,325 crore net short on Friday to Rs 23,498 crore on Monday.

Rupee gains; oil and gold diverge in direction

The Indian rupee appreciated by 15 paise to settle at 85.42 against the US dollar on Monday, helped by a weak greenback and easing crude prices. On Tuesday, gold prices were seen softening due to hopes of a ceasefire in the Russia-Ukraine conflict, while oil edged up amid strained US-Iran nuclear talks and reduced supply outlook.

Wall Street flat; Asia rebounds

US markets ended nearly flat overnight following renewed concerns about fiscal health and debt levels, with the Dow up 0.32 per cent, S&P 500 rising 0.09 per cent, and Nasdaq gaining a marginal 0.02 per cent.

Asian markets opened higher on Tuesday, tracking Wall Street’s modest gains and breaking a four-day losing streak.

Outlook

Analysts expect the market to hold firm unless global headwinds or domestic triggers change sentiment materially. With earnings season peaking and volatility ticking up, traders may witness sectoral rotation and stock-specific moves dominating the action in the coming sessions.