June 2 Pre-Market: GIFT Nifty Up, Markets to Open Green
Start your trading week informed: The GIFT Nifty signals a positive start for Indian markets, yet headwinds from global markets and FII selling could temper early gains. pro analysts pinpoint Nifty resistance at 24,800, with support at 24,700, urging a focus on individual stocks amidst volatility. India VIX softened, but global anxieties linger, as confirmed by early Asian trading and renewed U.S.-China trade tensions. DIIs show confidence. Check News Directory 3 frequently. watch the rupee’s performance amidst rising crude oil prices and closely monitor Manappuram. Discover what’s next for the markets.
Indian Markets Set for Positive Open Amid Global Uncertainty
Updated June 2, 2025
Indian markets are expected to begin the week on a positive note, buoyed by trends in the GIFT Nifty. At 6:50 a.m., the GIFT Nifty was up 40 points at 24,877, suggesting a mildly optimistic start. However, global market pressures and continued selling by foreign institutional investors may limit gains in domestic trading.
Technical analysts suggest the Nifty is encountering resistance around 24,800, with notable call writing observed at that level. Immediate support lies at 24,700; a break below this could lead to further declines toward 24,500.Analysts recommend focusing on individual stocks, closely monitoring volatility and institutional investment flows for strategic trading decisions.
The India VIX, a measure of market volatility, decreased by 2.09% on Friday, closing at 16.08. This decline suggests a temporary easing of trader anxiety, despite ongoing global economic headwinds. the domestic market appears to be drawing confidence from strong GDP figures and expectations of a potential rate cut by the Reserve Bank of India (RBI).
Across Asia, markets were largely down in early trading Monday. japan’s Topix index fell 0.8%, and S&P 500 futures dipped 0.3%. Renewed trade tensions between the U.S. and China have contributed to investor caution.Euro Stoxx 50 futures and Australia’s ASX 200 showed little movement, reflecting mixed investor sentiment.
Crude oil prices saw a rebound of over $1 per barrel in early Asian trading after OPEC+ agreed to increase output in July, aligning with previous production hike plans. Concurrently, the U.S. dollar experienced a slight weakening as markets reassessed the potential effects of U.S.tariff policies on inflation and overall economic growth.
On friday, foreign institutional investors (FIIs) sold off shares worth 64.5 billion rupees,continuing their selling trend. Though, domestic institutional investors (DIIs) offered significant support, making net purchases of 90.96 billion rupees, indicating sustained confidence in the local market.
The Indian rupee weakened, closing at 85.55 against the U.S. dollar, a decrease of 7 paise. The rise in crude oil prices and equity market volatility put downward pressure on the rupee, offsetting earlier gains.
Currently, manappuram is the only stock subject to the F&O ban. this restriction is triggered when the open interest in a stock exceeds 95% of its market-wide position limit.
what’s next
Market participants are expected to maintain a cautious stance, closely monitoring upcoming global economic data releases and RBI policy announcements later in the week. Investors should pay close attention to global developments, trends in FII investment flows, and crude oil price movements for insights into near-term market direction and potential investment opportunities in the Indian markets.