Indian markets opened higher on Monday following strong global cues, with Gift Nifty trading around 24,245 level, a premium of nearly 147 points from the Nifty futures' previous close, indicating a positive start for the Indian stock market indices. This represents a significant turnaround from Thursday's weak opening when the benchmark Nifty 50 had slipped below 24,000 level. The recovery comes amid signs of easing US-Iran tensions in the Middle East and positive global market sentiment.
The India VIX rose 5.8% to settle at 18.46 levels, as reported by The Economic Times. This measure of market fear increased significantly, indicating heightened uncertainty among investors. The volatility index had declined by nearly 8% during the week to close around 18, with further easing potentially supporting bullish momentum in the markets. However, volatility is expected to remain elevated as investors watch out for key triggers including assembly election results and Q4 earnings.
Asian markets traded higher amid signs of patchy progress in settling the US-Iran war, with MSCI's broadest index of Asia-Pacific shares outside Japan gaining 0.6%. South Korea's Kospi jumped 2.53%, while the Kosdaq rallied 2.26%. US markets ended mixed on Friday, with the S&P 500 and Nasdaq posting record closing highs, boosted by robust earnings and a dip in crude oil prices. The Dow Jones declined 152.87 points to 49,499.27, while the Nasdaq Composite closed 222.13 points higher at 25,114.44.
Foreign portfolio investors net sold shares worth ₹8,048 crore on Tuesday, while domestic institutional investors were net buyers at ₹3,487 crore, according to The Economic Times. This continued outflow pattern from foreign investors has been a key factor in market weakness, with persistent selling pressure weighing on overall market sentiment and contributing to the sideways trading pattern expected for Thursday's session.
According to technical analysis from The Economic Times, the immediate resistance is seen at the 50-DMA near 24,140, with a decisive breakout above this level potentially paving the way for an upside move towards 24,500. On the downside, a breach below 23,800 may drag the index towards 23,500 levels. The India VIX rising to 18.46 levels suggests increased market fear, while the positive Gift Nifty indication and global market strength provide some support amid the challenging market conditions. Traders are advised to remain agile and avoid aggressive leverage until clearer directional signals emerge.
