GIFT Nifty rises 100 points; here's the trading setup for today's session

Indian markets reacted to the NDA's election results with a 6% loss in Sensex and Nifty. Concerns over socialist policies were raised. Traders were cautioned by Kotak Securities. Adian Markets and Hang Seng futures showed varied performance. Oil prices fell slightly. Stocks in F&O ban.

Indian reacted sharply on Monday to the NDA falling short of expectations in the Lok Sabha , which triggered a loss of nearly 6% to both Sensex and .

"The markets are pricing the risk associated with this scenario, and the potential impact of a shift toward socialist policies by the government, thus leading to a sell-off," said Yashovardhan Khemka, Senior Manager, Research & Analytics at .

Here's breaking down the pre-market actions:

State of the markets
(Earlier SGX Nifty) signals a positive start

Nifty futures on the Gift Nifty traded 103 pts or 0.47% higher, at 22,050.

Tech View
We are of the view that the current market texture is extremely volatile and uncertain; hence, it is advisable that traders should remain cautious for next few sessions,” Shrikant Chouhan, Head of Equity Research, said.

India VIX: India VIX, which is a measure of the fear in the markets, fell 27.75% to settle at 26.75 levels.

Adian Markets

Hang Seng futures rose 0.2%
Japan’s Topix fell 0.9%
Australia’s S&P/ASX 200 was little changed
Euro Stoxx 50 futures fell 1%

US equities
U.S. closed slightly up on Tuesday after the release of labor market data, which was weaker than anticipated. This data reinforced the belief that the Federal Reserve might implement an interest rate reduction. Tuesday's figures revealed a decline in U.S. job openings to their lowest point in over three years in April. This indicates a loosening in labor market conditions, which aligns with expectations for a Fed rate cut in the near future. Consequently, U.S. Treasury yields decreased after the report was published.

Oil falls
Oil prices extended losses slightly from the previous session in early Asian trading on Wednesday after an industry report showed builds in U.S. crude and fuel stockpiles, adding to concerns around demand growth.

Brent crude futures fell 14 cents, or 0.2%, to $77.38 a barrel by 0005 GMT. U.S. West Texas Intermediate crude futures fell 18 cents, or 0.3%, to $73.07 a barrel.

Stocks in F&O ban today

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

FII/DII action
Foreign portfolio were net sellers at Rs 12,436 crore on Tuesday. DIIs too sold shares worth Rs 3,318 crore.

The rupee tumbled 37 paise to close at 83.51 against the US on Tuesday as the ruling fell short of the absolute majority in the Lok Sabha elections.

FII data
The net short of increased from Rs 1.96 lakh crore on Monday to Rs 3.55 lakh crore on Tuesday.

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Source: Stocks-Markets-Economic Times