Pre-market cues: Gift Nifty hints positive open; FIIs up long bets in F&O

All you need to know before the market opens on Tuesday, June 25, 2024: Gift Nifty quotes around 23,430 levels; Kospi, Taiwan deep in red in Asian trades; Allied Blenders IPO to open today.

Pre-market update June 25: Equity market may start Tuesday’s trading session on a slightly positive note amid supportive cues from global peers.

At 07:00 AM, Gift Nifty futures quoted around 23,570 as against the spot Nifty close of 23,538 on Monday.

With lack of events on the economic calendar, the upcoming monthly futures & options expiry on Thursday will be the key focus. 

Global mood

Overnight in the US, the equity market ended on a mixed note amid sell-off in tech shares, with Nvidia falling almost 7 per cent. The S&P 500 and the NASDAQ dropped 0.3 per cent and 1.1 per cent, respectively, while Dow Jones gained 0.7 per cent. Equity market in the US will closely track speeches by key US officials till Tuesday.

The US 10-year bond yield eased to 4.235 per cent. Among commodities, Gold futures quoted around $2,340 levels, while Brent Crude Oil futures remained steady around $85 per barrel.

ALSO READ: Stock market outlook: Will the Nifty rise or fall today? Check experts view

Markets in the Asia-Pacific region held marginal gains on Tuesday morning. Australia’s benchmark indices - the ASX 200 and All Ordinaries rallied up to 0.7 per cent each, while Kospi added 0.2 per cent. Japan’s Nikkei traded on a flat note.

Fund flow action

Both FIIs and DIIs turned net sellers on June 24. Foreign institutional investors (FIIs) net sold stocks worth Rs 654 crore on June 24, while domestic institutional investors (DIIs) were sold shares to the tune of Rs 820 crore.

In the derivatives segment, FIIs net bought 29,443 index futures contract to the tune of Rs 1,776 crore. FIIs, mainly, bought Nifty futures worth Rs 1,426 crore (Open interest up by 23,948 contracts) and Bank Nifty futures worth Rs 195.48 crore (OI up by 2,527 contracts).

As a result, FIIs index futures long-short ratio rose to its highest level in over two months to 1.44, with net index longs at 59.09 per cent 40.92 per cent short positions. 

On the other hand, DIIs (Domestic Institutional Investors) and retail investors raised their bets on the short side in index futures to 62.11 per cent and 54.58 per cent.

Stocks in F&O ban period

Balrampur Chini, Chambal Fertilizers, GNFC, Granules India, Indus Towers, Piramal Enterprises, Punjab National Bank (PNB) and SAIL are the eight stocks in F&O ban period on Tuesday. 

The Future & Options (F&O) contract of a particular stock enters the ban period when the open interest (OI) on it crosses 95 per cent of the market-wide positions limits (MWPL).  Only squaring off positions is allowed in all such stocks, any fresh position in these counters shall attract a penalty from the exchange.

That apart, shares of telecom companies – Bharti Airtel and Vodafone Idea are likely to be in focus as the Department of Telecom (DoT) will begin the spectrum auction today. 

Primary Market Update

Allied Blenders and Distillers Rs 1,500 crore IPO to open for subscription today. The company is offering shares in the price band of Rs 267 – Rs 281 per share.

Meanwhile, Stanley Lifestyle IPO to close today. The issue so far has garnered an overall subscription of 2.30 times, shows NSE data.

That apart from the 5 SME IPOs already open for subscription, Medicamen Organics is showing high interest with up to 182 times subscription.