Markets are set for a positive opening as GIFT Nifty shows gains; The RBI’s policy decision is focused

Indian stock markets are expecting a positive opening on Friday, supported by signals from the GIFT Nifty, which is trading higher by 39.50 points or 0.16 percent at 24,804.50. However, more volatility is expected as investors await the Reserve Bank of India’s (RBI) monetary policy announcement later today.

Important indicators to watch

Global market signals:

US markets ended lower on Thursday as investors digested data on upcoming jobs, which could impact the Federal Reserve’s rate decisions. The Dow Jones was down 0.6 percent, while the S&P 500 and Nasdaq were down 0.2 percent each. Asian markets echoed the sentiment, with Japan’s Topix and Australia’s ASX 200 dipping slightly.

Performance of local indicators:

On Thursday, the S&P BSE Sensex gained 809.53 points to close at 81,765.86, while the Nifty 50 gained 240.95 points, ending at 24,708.40. Analysts suggest that the bullish trend may continue if the Nifty remains above the key level of 24,300, with an upside potential of up to 25,000.

India VIX:

The market fear index rose slightly by 0.54 percent to 14.53, reflecting caution amid growing uncertainty.

F&O restriction:

Granules and Manappuram are in the Futures and Options (F&O) block today as their margins across the market have crossed 95 percent.

Currency update:

The rupee made a modest recovery from its all-time low, closing a 3-pass high at 84.72 against the US dollar on Thursday.

FII/DII flows:

Foreign institutional investors (FIIs) were buyers on Thursday, putting in Rs 8,539 crore, while domestic institutional investors (DIIs) sold shares worth Rs 2,304 crore.

Technical view:

Market experts recommend a buy-on-dips approach, focusing on maintaining the 24,300 support level.

Outlook

With the GIFT Nifty showing a positive opening and RBI policy decisions on the horizon, market participants should face a potentially volatile but trending session.