Nifty, Sensex may see positive start, tracking global cues; levels to watch on September 9

Nifty, Sensex are likely to open with gains.

Dalal Street may open on a positive note, echoing gains from Wall Street and Asian peers, as investors bet that the U.S. Federal Reserve will trim the key lending rate, on Tuesday, September 9. At 7.30 am, the GIFT Nifty index was quoting 24,937.5, higher by 0.15 percent or 36 points.

Asian equities advanced on Tuesday, tracking Wall Street’s optimism ahead of anticipated Federal Reserve rate cuts. Shares in Japan and South Korea traded higher in the morning session. Overnight, the Nasdaq closed at a record high, powered by gains in Broadcom, while the S&P 500 also edged up as investors grew confident that the Fed will soon ease borrowing costs to support growth.

Investors are now shifting focus to inflation readings due from both India and the US, which are likely to shape the Federal Reserve’s policy path. In the US, last week’s softer jobs report raised concerns that the Fed may have delayed rate cuts for too long.

After an initial dip on the weak employment data, the S&P 500 managed to recover. With inflation expected to show limited further easing, markets are still pricing in close to three Fed rate cuts this year, beginning September.

FIIs were net sellers worth Rs 2,222.32 crore, while DIIs absorbed the selling with net buys of Rs 2,887.22 crore. Interestingly, FII positioning in index options has turned net bullish, with three consecutive days of long build-up, hinting at a possible recovery in the near term.

Key levels to watch in trade

On the technical front, in the previous session, the Nifty closed at 24,773.15, slipping below its opening levels. The index once again failed to sustain above the 24,800 breakout level, facing heavy selling pressure. Immediate resistance is now seen at 24,700, with the stronger hurdle at 24,600.

"On the downside, a clear break below 24,700 could drag the index towards the 24,600–24,650 support zone. However, a breakout above 24,800, accompanied by high volumes, may open the path to 24,950–25,000. The RSI (14) hovers near 50, suggesting neutral momentum and a likely flat-to-muted opening," said Hariprasad K, founder, Livelong Wealth.

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