Pre Market Setup (June 19): Indian equities are likely to begin Thursday’s trade on a weak note as GIFT Nifty futures fell by 70 points to 24,743, tracking subdued global sentiment ahead of the US Federal Reserve’s policy outcome and lingering Middle East tensions. With the Nifty slipping below its key support of 24,850 in the previous session, analysts suggest volatility could stay elevated unless a strong rebound materialises.

Fed outcome, geopolitical uncertainty weigh on sentiment

Caution prevails across global markets as investors brace for the Fed’s stance on rate cuts. US Fed Chair Jerome Powell flagged a potential uptick in inflation due to Donald Trump’s proposed tariffs, leading to a flattish close on Wall Street overnight. The Dow fell 0.1 per cent, S&P 500 dropped 0.03 per cent, while Nasdaq edged up 0.1 per cent.

Asian markets

Asian equities were in the red early Thursday. Japan’s Topix fell 0.6 per cent, Hang Seng futures declined 0.5 per cent, and Australia’s ASX 200 dropped 0.2 per cent. S&P 500 futures also dipped 0.3 per cent as risk sentiment remained fragile.

Technical outlook

The Nifty ended marginally lower on Wednesday, closing below the crucial 24,850-mark. Analysts say the index now needs to decisively reclaim 24,850 to regain bullish momentum. Failing that, the downside may stretch towards 24,500 levels.

India VIX eased 0.9 per cent to 14.28, indicating relatively low volatility, though this could change post-Fed cues.

Gold, oil movement

Gold prices rose slightly as traders looked for safety amid geopolitical concerns, though expectations of slower US rate cuts capped upside. Crude oil prices fell after Trump’s ambiguous remarks on US involvement in the Israel-Iran conflict.

F&O ban list: 8 stocks under restriction

Stocks under the F&O ban today include IREDA, CDSL, ABFRL, Chambal Fertilisers, HUDCO, RBL Bank, Titagarh and Birlasoft, having crossed 95 per cent of the market-wide position limit.

FII/DII flow

Foreign institutional investors (FIIs) net sold shares worth Rs 891 crore on Wednesday, while domestic institutional investors (DIIs) provided support with net buying of Rs 1,091 crore.

The rupee weakened by 9 paise to settle at 86.43 against the US dollar, weighed down by high crude prices and risk aversion.

With GIFT Nifty hinting at a weak start and global uncertainty running high, traders should watch the 24,850-mark on Nifty. Fed commentary and geopolitical updates will remain the top triggers today.