Pre-Market Setup (June 23): GIFT Nifty futures down 150 pts; Monday mood cautious as Dalal Street eyes global cues

Equity markets are likely to open in the red on Monday, June 23, as GIFT Nifty futures traded 153 points lower at 24,976, indicating a weak handover from global peers. Rising geopolitical tensions in the Middle East, specifically the US’s involvement in strikes on Iranian nuclear sites, have unnerved global investors.

The cues from Asia were mostly negative with Japan’s Topix down 0.6 per cent, Hang Seng futures slipping 0.5 per cent, and Australia’s ASX200 lower by 0.4 per cent. US stock futures were also down, with the S&P 500 futures falling 0.4 per cent in early Asian trade.

Key support, volatility, and F&O cues

Analysts peg crucial Nifty support at 24,850. As long as the index sustains above this level, a ‘buy on dips’ strategy remains valid, with resistance seen near 25,350. India VIX, a barometer of market volatility, cooled by 4.09 per cent on Friday to settle at 13.67, but is expected to rise again given the Middle East escalation.

Four stocks have entered the F&O ban list for the session: ABFRL, RBL Bank, Titagarh and Biocon. These counters have breached 95 per cent of their market-wide position limit (MWPL).

FIIs turn net buyers; Rupee gains strength

Foreign Institutional Investors (FIIs) were net buyers of Rs 7,940 crore on Friday, while Domestic Institutional Investors (DIIs) booked profits worth Rs 3,040 crore. The rupee also snapped its three-day losing streak and appreciated 18 paise to close at 86.55 against the US dollar.

Commodity and currency outlook

Oil prices surged to their highest since January as the US strike on Iran raised fears of supply disruptions. Gold edged higher on safe-haven demand, while the US dollar firmed slightly but remained range-bound as markets await Iran’s response.

What to watch today

F&O expiry build-up in high-beta stocks
Reactions to escalating geopolitical risks
Volatility in crude oil prices and its impact on OMCs and aviation
Midcap and PSU bank performance after strong Friday rally

Investors should brace for a volatile start and monitor cues from oil, currency, and global equity flows. Sector rotation and profit booking could dominate Monday’s trade.

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