Equity benchmarks are poised for another day of gains on Friday, June 27, as GIFT Nifty futures rose 108 points, trading around 25,718, indicating a strong start for Dalal Street. The surge comes on the back of positive global cues, easing geopolitical tensions, and solid foreign inflows, with the Nifty50 expected to move closer to its previous life highs.
The domestic equity market hit a new 2025 high of 25,565 on Thursday, boosted by improving macros and a stable global backdrop. Analysts believe the bullish momentum will likely continue, especially with no major resistance seen up to the 25,750 zone, and support holding firm at 25,300–25,350.
Wall Street rally
The global risk-on sentiment remained intact as Wall Street closed higher, with the S&P 500 and Nasdaq inching closer to record highs. The Israel-Iran ceasefire continues to hold, easing investor concerns over energy supply disruptions. Simultaneously, economic indicators in the US are strengthening the case for potential Fed rate cuts later this year.
Asian markets reflected this optimism early on Friday. Japan’s Topix rose 0.9 per cent, while Australia’s ASX 200 gained 0.6 per cent, although Hang Seng and S&P 500 futures were flat in early trade.
India VIX cools off
Volatility remains low with India VIX falling 3 per cent to 12.59, a sign of confidence among market participants. Technical experts suggest that if the index sustains above 25,600, we may see another 150–200 points rally, supported by momentum in large-cap stocks and continued buying interest in financials.
FII & DIIs
In a strong vote of confidence, FPIs turned net buyers, pumping in Rs 12,594 crore on Thursday, the highest in recent weeks. DIIs, however, booked profits worth Rs 195 crore, possibly taking money off the table ahead of the June F&O expiry.
The FII short positions in index futures have also reduced sharply from over Rs 1.06 lakh crore to Rs 34,967 crore, indicating a short-covering rally and a shift to a more balanced stance.
Currency check
The Indian rupee appreciated by 36 paise, closing at 85.72 against the US dollar, driven by strong equity inflows and a soft dollar globally.
Meanwhile, Brent crude was last seen at $68.07 per barrel, up 0.5 per cent, as US fuel demand picked up with the onset of the summer driving season, even though weekly losses are likely as tensions in the Middle East ease.
No stocks in F&O ban
There are no stocks under the F&O ban today, which could add to liquidity in the derivatives segment on the monthly expiry session. Traders are expected to take cues from the rollover data and price action near the 25,700 mark on the Nifty.
What to expect today
With Gift Nifty signalling a strong start, FIIs coming back aggressively, and technical levels favouring bulls, the Nifty50 is likely to open with an upward gap and test new highs in today’s trade. Traders will closely watch sectoral leadership from banks, IT and energy, and track rollover cues as June derivatives contracts expire.
