Stocks steady ahead of trading day

Indian equity markets are set to open on a steady note, supported by firm regional cues, although investors are likely to remain selective as geopolitical developments and global macroeconomic expectations continue to shape risk sentiment.

Improving risk appetite across global financial markets and encouraging flows into emerging-market assets also provide support.

Indian equities are expected to trade with a positive bias next week, supported by resilient domestic fundamentals, easing geopolitical concerns and continued stock-specific opportunities as the Q1FY27 earnings season enters its final leg, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

GIFT Nifty Futures on the NSE International Exchange were 4.50 points, or 0.02 per cent, up at 24,659.50, hinting at a muted start for the domestic market on Monday.

Asian share markets rose on Monday after a soft US jobs report pared the risk of a near-term rise in borrowing costs.

Nikkei jumped nearly 2 per cent, while Hang Seng and KOSPI were up half to a per cent each.

US stocks advanced on Friday after data showed the US economy unexpectedly shed jobs last month and dampened expectations the US Fed would raise interest rates at its September meeting.

The Dow Jones Industrial Average rose 0.28 per cent to 54,036.93, the S&P 500 jumped 0.62 per cent, to 7,757.64 and the Nasdaq Composite gained 1.30 per cent to 26,690.62.

Lack of progress in Gulf peace talks saw oil prices creep higher.

Brent crude added 0.9 per cent to $84.32 a barrel as shipping through the vital waterway remained at a trickle, while US crude rose 0.7 per cent to $78.74 a barrel.

Investors may remain cautious amid evolving geopolitical developments in West Asia and fluctuations in crude oil prices, said Ajit Mishra, SVP of Research at Religare Broking.

Maintaining disciplined position sizing and prudent risk management will remain essential, given the potential for heightened volatility arising from geopolitical developments, macroeconomic data and earnings.

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 480.24 crore on Friday.

On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 235.56 crore on a net-net basis.

The sustained buying by both FIIs and DIIs was largely driven by the de-escalation of geopolitical tensions, which helped strengthen investor confidence and supported positive market sentiment, said Pabitro Mukherjee, Deputy Vice President of Research at Bajaj Broking, as investors look at geopolitical tensions and their impact on the market.

The market has formed a Doji candlestick pattern on weekly charts, and it is witnessing a range-bound formation on intraday charts, indicating indecisiveness between the bulls and bears.

The short-term market outlook remains positive, but a fresh uptrend rally is possible only after the dismissal of 24,700-79,100, said Amol Athawale, VP of Technical Research at Kotak Securities.

Sensex formed a bearish candlestick, reflecting near-term profit booking.