GIFT Nifty down 110 points; here's the trading setup for today's session

After showing a narrow range movement on Wednesday, Nifty witnessed high volatility on Thursday on the backdrop of US President Trump imposing a 25% tariff on India and the market closed lower. Analysts say the underlying short-term trend of Nifty remains positive with high volatility.

Given the likelihood of volatile swings, analysts recommend maintaining a cautious stance and prefer a hedged approach.

Stock-specific action will likely continue as the earnings season gathers pace.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 109.50 points, or 0.43 per cent, at 24,728.50, signaling that Dalal Street was headed for negative start on Friday.

• Tech View: Despite several negative setups, a hidden positive divergence has been observed over the past 2–3 days, indicating a potential bullish reversal. This setup may play out well if the Nifty decisively moves above 25,000. On the lower side, support is placed at 24,600. A range-bound movement is expected until the Nifty breaks out of the 24,600–25,000 range.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 3% to settle at 11.54 levels.

US stocks end lower
U.S. stocks closed lower on Thursday as early gains faded, following the latest round of corporate earnings and economic data, as investors awaited results from megacaps Amazon and Apple due after the closing bell.

• Dow down 0.74%,
• S&P falls 0.37%,
• Nasdaq slips 0.03%

Asian shares down
Asian stocks fell for a sixth straight session — the longest losing streak this year — as President Donald Trump announced new tariff rates and as solid earnings from megacap tech firms failed to lift broader market sentiment.

• S&P 500 futures fell 0.3% as of 9:57 a.m. Tokyo time
• Hang Seng futures fell 0.2%
• Nikkei 225 futures (OSE) fell 1%
• Japan’s Topix was little changed
• Australia’s S&P/ASX 200 fell 0.9%
• Euro Stoxx 50 futures fell 0.4%

Oil steadies
Oil prices were little changed on Friday after falling more than 1% in the previous session as traders digested the impact of new higher U.S. tariffs that may curtail economic activity and lower global fuel demand growth.

Dollar gains
The dollar headed for its best week in almost three years against its major peers, maintaining momentum on Friday after U.S. President Donald Trump set new tariff rates on dozens of trade partners.

Stocks in F&O ban today
NIL

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 investors net sold shares worth Rs 5,588 crore on Thursday. DIIs, meanwhile, were net buyers at Rs 6,373 crore.

Rupee
The rupee depreciated 52 paise to close at 87.43 against the US dollar on Wednesday, on uncertainty over India-US trade deal after US President Donald Trump hinted at tariff rates of around 20-25 per cent ahead of the deadline of August 1.

FII data
The position of FIIs in the futures market reduced from a net short of Rs 1.73 lakh crore on Wednesday to Rs 1.37 lakh crore on Thursday.