GIFT Useful 90 points; here is the trading setup for today’s session

The Union Budget for FY27 struck a balancing act by keeping capital investment growth at 12% despite revenue pressures, with an increase in short-term borrowing being the only negative. The Nifty corrected 2% on Budget Day and analysts say they now see a limited downside (1-2%) compared to current levels.“However, a reversal of the recent correction is highly dependent on arresting the rupee’s weakness. The recent crash in gold prices is good news in that regard, as is an early finalization of the India-US trade deal,” Emkay Global said.

STATE OF THE MARKETS
GIFT Nifty (earlier SGX Nifty) marks a positive start
GIFT Nifty on the NSE IX was trading 90.50 points, or 0.37 percent, higher at 24,876.50, indicating that Dalal Street was heading for a positive start on Monday.

• Technical representation: Technically, Nifty is now consolidating below the previous breakdown zone, indicating a clear sell-on-rally structure in the near term. As long as the index remains below the 25,200–25,300 resistance band, the bias remains cautious to bearish. Only a sustained move back above 25,300 could neutralize the negative undertone and signal near-term stabilization.
• India VIX: The India VIX, a measure of fear in the markets, rose 13% to the level of 15.10.

Asian shares fall
Asian shares fell and precious metals extended their losses on Monday, underscoring fragile sentiment in markets after a choppy end to the week on Wall Street. The yen weakened.

• S&P 500 futures fell 0.3% as of 9:04 a.m. Tokyo time
• Hang Seng futures fell 0.6%
• Japan’s Topix rose 0.6%
• Australia’s S&P/ASX 200 fell 0.6%
• Euro Stoxx 50 futures rose 0.8%

Oil slides

Oil prices fell 3% on Monday as US President Donald Trump said this weekend that Iran was in “serious discussions” with Washington, signaling a de-escalation with an OPEC member, after the risks of a military strike pushed prices to their highest level in several months.

Gold down
Gold fell further on Monday, pressured by a firm dollar, as investors probed US President Donald Trump’s Fed chairman Kevin Warsh’s approach to rate cuts, while silver recovered from a more than three-week low on Friday.

Dollar Company
The dollar held on to its gains on Monday as investors weighed what a Federal Reserve under Kevin Warsh might look like, with his preference for a smaller balance sheet.

Shares in F&O ban todaySammaan capital

Securities in the ban period under the F&O segment include companies in which the security has exceeded 95% of the market-wide position limit.

FII/DII action
Foreign portfolio investors net sold shares worth Rs 588 crore on Friday. DIIs, meanwhile, were net sellers of Rs 683 crore.

Rupee
The rupee touched a low of 92.02 on Friday before ending six paise higher at 91.93 against the US dollar amid a firm US currency and geopolitical uncertainties.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of Economic Times)