After ₹14 lakh crore wipeout, GIFT Nifty hints at comeback for markets

GIFT Nifty emerged as the key early indicator for Indian equities on Thursday, signaling a strong start for Dalal Street even as domestic markets remain gripped by volatility and recent losses.

GIFT Nifty on the NSE IX was trading higher by 199 points, or 0.79 per cent, at 25,362, suggesting a positive opening for benchmark indices after three consecutive sessions of decline. The uptick comes amid firm cues from Wall Street and gains across major Asian markets.

For traders, the 25,300 level is now a crucial upside mark for the Nifty. Market bulls have so far managed to defend the 200-day moving average, raising hopes of a short-term relief rally following overnight global moves. However, analysts caution that sustained momentum will be necessary for the rebound to be sustained.

Global sentiment remains mixed, with investors weighing comments from US President Donald Trump, who said in an interview that India and the US are “going to make a good deal” on trade. While markets may not immediately price in the remarks, export-oriented stocks are expected to stay in focus.

Thursday is also shaping up to be one of the busiest sessions of the week, with the Sensex weekly expiry coinciding with a heavy earnings calendar.

Stocks such as Eternal, Dr. Reddy’s, Waaree Energies, HPCL, and Bank of India will react to their results, while IndiGo, Bandhan Bank, IIFL Finance, CAMS, Coforge, Premier Energies, Mphasis and DLF are scheduled to report later in the day.

The Nifty Bank index will be closely watched as it attempts to reclaim the critical 59,500 level, from which it is currently about 700 points away. Its movement could determine whether the broader market rally sustains beyond the opening bell.

Technically, the Nifty formed a small doji-like candle on Wednesday, reflecting heightened volatility. Such a pattern after a decline often signals a possible reversal, though confirmation is still awaited.

The index continues to struggle above the 25,150 zone, which coincides with the 200-day EMA. A break below 24,900 could deepen losses toward 24,500, while a decisive move above 25,200 may trigger a short-term bounce.

The cautious optimism indicated by GIFT Nifty comes after a sharp selloff that has erased nearly ₹14 lakh crore in investor wealth over the past three sessions. The Sensex has fallen more than 1,660 points in this period, while the Nifty has slipped around 2%, underlining the fragile mood despite early global support.