Pre Market Setup (May 6): GIFT Nifty futures up 30 pts; D-Street likely to open in green amid strong FII flows, US-China trade optimism

GIFT Nifty futures rose 31.5 points to 24,592.50 in early trade on Tuesday, suggesting a positive start for benchmark indices amid strong FII inflows, trade optimism, and a sharp rally in the rupee. The mood across Dalal Street remains upbeat following Monday’s close in the green, aided by solid US jobs data and improving sentiment around US-China trade relations.

Analysts expect the market to continue consolidating with a positive bias. If Nifty manages to sustain above the crucial 24,550–24,600 resistance zone, the index may resume its upward momentum. On the downside, support is now seen near 24,350, followed by 24,200.

Global cues mixed; gold climbs, oil steadies

Wall Street closed lower on Monday, ending its longest winning streak in two decades. The S&P 500 dipped 0.64 per cent, while the Dow Jones lost 0.24 per cent as traders awaited the Federal Reserve’s policy stance later this week. President Trump’s fresh tariff threats also added to caution.

Asian markets opened mixed, with Nikkei 225 futures up 0.9 per cent, while Australia’s ASX 200 slipped 0.1 per cent. Euro Stoxx futures remained flat, and US S&P 500 futures edged 0.2 per cent lower in early Tokyo trade.

Gold prices hit a one-week high as investors sought safety amid renewed tariff tensions. Meanwhile, crude oil steadied after falling to four-year lows, following OPEC+’s decision to increase output, raising fresh concerns of oversupply.

India VIX, F&O ban, and rupee update

The India VIX rose 0.44 per cent to 18.34, signaling lingering caution despite a bullish bias. Traders should watch for intraday volatility, especially with key global events lined up.

RBL Bank remains the only stock under the F&O ban, having crossed the 95 per cent market-wide position limit.

On the currency front, the rupee gained 27 paise to close at 84.30 against the US dollar, aided by falling crude prices and sustained equity inflows.

FII-DII flow supports bulls

Foreign investors turned net buyers, pumping in Rs 498 crore into Indian equities on Monday, while domestic institutional investors (DIIs) were stronger buyers, investing Rs 2,789 crore. The robust participation from both camps continues to provide a strong cushion to the market.

Technical view

Technical analysts believe that a decisive close above 24,600 could trigger fresh upside in Nifty, taking it towards new all-time highs. However, traders are advised to stay cautious and adopt a buy-on-dips strategy until the breakout is confirmed.