GIFT Nifty and Global Cues Signal Positive Opening for D-Street on July 22

Tuesday, July 22: Indian equities are poised for a positive opening on Tuesday, 22 July, driven by favourable cues from GIFT Nifty and a largely positive sentiment across global markets. This means that investors can expect the market to open at a high as the sentiment remains positive.

GIFT Nifty Indicates Upbeat Mood

As of 8:30 AM, the GIFT Nifty stood at 25,182.50, up 0.50 points. The index opened at 25,175.50, matching its intraday low, while hitting a high of 25,190.00. The previous close was 25,182.00, indicating a steady, mildly positive trend ahead of the market open.

Asian markets are also trading higher on Tuesday, following an overnight rally on Wall Street. Japan’s Nikkei 225 has climbed 1.1%, while the Topix index surged 0.96%. South Korea’s Kospi index is up 0.1%, and the tech-heavy Kosdaq advanced 0.7%. Hong Kong’s Hang Seng index futures also indicated a stronger opening.

Sensex and Nifty Rebound After Two-Day Losing Streak

In the previous session, the Nifty 50 and Sensex ended their two-day slump with sharp gains, buoyed by strong buying in heavyweights such as HDFC Bank, Eternal, and ICICI Bank. This renewed investor confidence came despite ongoing concerns surrounding global trade tariffs.

Wall Street Performance

On Monday, 21 July, US stock markets ended mostly higher. The S&P 500 gained 0.14% to close at 6,305.60, reaching a new all-time closing high. The Nasdaq Composite advanced 0.38% to 20,974.18, extending its impressive streak of record closes. The Dow Jones Industrial Average, however, saw a minor dip of 0.04% to 44,323.07. The positive sentiment was largely driven by progress in tariff negotiations between the US and its trading partners ahead of the 1 August deadline, and a strong start to the Q2 earnings season.

Institutional Activity: DIIs Buy While FPIs Sell

On 21 July, Foreign Portfolio Investors (FPIs) were net sellers of Indian equities worth ₹1,681.23 crore. In contrast, Domestic Institutional Investors (DIIs) stepped up, buying shares worth ₹3,578.43 crore, according to NSE provisional data.

Volatility Index Remains Subdued

India VIX declined by 1.67% to close at 11.20, well below the psychologically significant level of 13. This low volatility indicates that while bearish activity persists during intraday rallies, panic selling remains absent.

Other Key Global Cues

• Dollar Index: The US dollar traded in a tight range on Tuesday morning. The US dollar index (DXY) rose slightly to 97.94 after having fallen 0.6% on Monday.
• US Treasury Yields: US Treasuries rallied, pushing yields lower. The yield on benchmark US 10-year notes fell 4.7 basis points to 4.384%. The 30-year bond yield fell 5 basis points to 4.9491%, and the 2-year note yield fell 1.4 basis points to 3.863%.
• Crude Oil Prices: Crude oil prices edged lower on Tuesday amid concerns that a potential trade war between the US and the European Union could curb fuel demand growth. Brent crude futures fell 0.35% to $68.97 a barrel, while US West Texas Intermediate (WTI) crude price was at $66.99 a barrel, down 0.31%.
• Gold Prices: Gold prices rose to their highest point in over a month, supported by a weaker US dollar and lower Treasury yields. Spot gold price was steady at $3,390.73 per ounce.
• India-US Trade Deal Talks: A team of US trade officials is expected to visit India in August for the next round of talks for the proposed bilateral trade deal, following the conclusion of the fifth round of talks last week in Washington.
• Core Sector Growth: India’s eight core infrastructure sectors’ growth slowed to 1.7% in June 2025 from 5% in the same month last year. However, the expansion was slightly up compared to May’s 1.2% growth.

How Do These Factors Signal a Positive Start For The Stock Market?

A combination of strong domestic institutional buying, positive global cues, and low market volatility is signalling a bullish start for Indian equities on July 22. Here’s how:

1. GIFT Nifty Signals Stability: The GIFT Nifty is marginally in the green, suggesting a flat to slightly positive opening. Its tight range also indicates market calm and steady investor sentiment.
2. Global Market Rally: Asian markets are trading higher following Wall Street’s strong close, especially the Nasdaq, which hit another record high. This reinforces risk appetite and supports buying momentum in emerging markets like India.
3. DII Support Offsets FPI Selling: Despite FPIs selling ₹1,681 crore worth of stocks, Domestic Institutional Investors (DIIs) bought ₹3,578 crore, showing robust local support and confidence in Indian equities.
4. Low Volatility Index (India VIX): The decline in India VIX to 11.20 suggests reduced fear and uncertainty, allowing for smoother upward market movement without panic-driven selling.
5. Commodity Trends Favourable: Lower oil prices reduce inflation and import costs, while rising gold prices suggest continued safe-haven interest, but not enough to trigger risk aversion.
6. Progress on US-India Trade Talks: Continued dialogue and an expected August visit by US officials indicate a constructive path forward, easing trade-related anxieties.

Key Technical Levels to Watch Today

Technical indicators show a bounce from the crucial 24,900–25,000 range. However, the Nifty continues to trade below its 10-day and 20-day Exponential Moving Averages (EMAs), both near the 25,200 mark. This reflects ongoing supply pressure at higher levels.

Additionally, the Long-Short ratio in index futures has dipped into oversold territory, opening the door for a potential short-covering rally.

What’s Ahead For Today?

With strong global cues, a mildly positive GIFT Nifty movement, and supportive domestic institutional activity, Indian markets are likely to open in the green on 22 July. However, technical resistance near 25,200 and cautious FPI sentiment may influence intraday movement. Traders should keep a close eye on the 24,900–25,200 range for directional signals.

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