GIFT Nifty hovers near flatline, indicates muted start for markets

Wall Street settled on a mixed note.

Indian frontline indices Nifty 50 and Sensex might see a tepid open in trade on Thursday, May 15, as investors lack strong directional cues, with Wall Street settling on a mixed note and Asian markets slip into the red.

At 8 am, the GIFT Nifty index managed to eke out minor gains of 3.5 points, higher by 0.01 percent in trade.

Overnight, Wall Street settled on a mixed note. The S&P 500 closed slightly higher after flitting between gains and losses during Wednesday's lackluster session as investors waited for the next batch of economic data after a robust start to the week spurred by soft inflation data and a US-China tariff truce.

The Dow Jones Industrial Average fell 0.21 percent, the S&P 500 gained 0.10 percent, while the tech-heavy Nasdaq Composite gained 0.75 percent in trade. S&P 500 is still about 4 percent below its February 19 record closing high, for its sixth straight day of gains.

Stocks in Asia fell on Thursday for the first time in five sessions as the rally on Wall Street sparked
by US-China trade talks showed signs of exhaustion.

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In the previous session, the markets traded within a narrow range following Tuesday’s dip but managed to close slightly higher. The session began on a positive note, supported by encouraging factors such as easing retail inflation and stable global cues.

However, the absence of sustained buying interest and a mixed performance among heavyweight stocks limited further gains as the day progressed. Eventually, the Nifty closed at 24,666.90, up by 0.36 percent.

"We believe this is a healthy pause in Nifty following Monday’s rally, and it may continue for another session or two. Alongside key sectors, themes such as defense, railways, and PSU banking are also offering trading opportunities. However, it's important to maintain a balanced view and avoid excessive exposure," said Ajit Mishra – SVP, Research, Religare Broking.

Furthermore, during the session, the Nifty 50 breached the previous day’s low of 24,547 but managed to hold its level above 5-day SMA, currently placed near 24,500. "Bullish trend is well-intact for Nifty 50 as it has been holding its level above all key moving averages. On the downside, strong supports for Nifty are placed at 24,500 and 24,378, while on the upside, 24,850 and 24,975 could offer resistance," said Nandish Shah, Senior Derivative & Technical Research Analyst, HDFC Securities.

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