Pre-market action: Here's the trade setup for today's session

Equity markets extended their losing streak to Wednesday with Nifty now correcting more than 10% from its record high, reaching its major moving average support.

"This confluence of support and oversold conditions might trigger a rebound, although any recovery could be limited to select stocks. Traders are advised to monitor positions closely and maintain a hedged strategy," said Ajit Mishra – SVP, Research, Religare Broking.

Here's breaking down the pre-market actions:

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a muted start
GIFT Nifty on the NSE IX traded lower by 7 points, or 0.03 per cent, at 23,636.50, signaling that Dalal Street was headed for muted start on Thursday.

• Tech View: A strong break below 23,500, will push the index further lower to 23,300-23,200 levels, where the trend line support is placed. Overall, market sentiment appears to be negative, but we'll have to see how the Nifty behaves around the 200-DEMA support, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 5.8% to settle at 15.44 levels.

US stocks mixed
The Dow and the S&P 500 ended slightly higher on Wednesday while the Nasdaq lost ground after October data showed consumer prices rising in line with expectations, adding support to bets that the U.S. Federal Reserve will cut interest rates in December.

• Dow up 0.11%,
• S&P 500 rises 0.02%,
• Nasdaq off 0.26%

Asian shares up
Asian shares drifted higher Thursday after US inflation data supported the case for another Federal Reserve rate cut next month.

• S&P 500 futures were little changed as of 9:33 a.m. Tokyo time
• Hang Seng futures fell 1%
• Japan’s Topix rose 0.6%
• Australia’s S&P/ASX 200 rose 0.5%
• Euro Stoxx 50 futures rose 0.4%

Oil dips
Oil prices dropped slightly early on Thursday on expectations of higher global production amid forecasts for weak demand growth, while a firmer dollar also kept a lid on prices.

Dollar at one-year high
The U.S. dollar revisited a one-year high against major peers on Thursday, as a fourth straight winning session from momentum sparked by Donald Trump's election victory eclipsed a rise in bets for Federal Reserve easing.

Stocks in F&O ban today

1) ABFRL

2) Granules

3) GNFC

4) Hindustan Copper

5) Aarti Industries

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

FII/DII action
Foreign portfolio investors turned net sellers at Rs 2,502 crore on Wednesday. DIIs bought shares worth Rs 6145 crore.

Rupee
The rupee moved in a narrow range and settled flat at 84.39 against the US dollar on Wednesday, as persistent foreign fund outflows and a massive selling in domestic equities weighed on the local unit.

FII data
The net short of FIIs increased from Rs 1.85 lakh crore on Tuesday to Rs 2.12 lakh crore on Wednesday.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)