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

Nifty witnessed a strong sell off on the first day of the week, driven by nervousness around the US presidential election outcome as it can result in major global policy shifts.

"We expect markets to remain subdued on the back of several global events, consistent FII selling and tepid earnings by domestic companies so far. This week will be crucial as lot of index heavy weight including will announce results and could lead to stock specific action," said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal

Here's breaking down the pre-market actions:

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 54 points, or 0.22 per cent, at 24,067.50, signaling that Dalal Street was headed for negative start on Tuesday.

• Tech View: The short-term trend of Nifty continues to be down and one may expect more weakness in the short term. The next crucial lower support to be watched is around 23,500, which is the 200-day EMA. Any bounce back from here could find strong resistance around the 24,200 levels, said Nagaraj Shetti of HDFC Securities.
• India VIX: India VIX, which is a measure of the fear in the markets, rose nearly 5% to settle at 16.69 levels.

US stocks down
U.S. stocks closed slightly lower after a choppy session on Monday, as investors prepared for a crucial week in which Americans will elect a new president and the Federal Reserve will announce its policy statement.

• Dow 0.61%,
• S&P 500 0.28%,
• Nasdaq 0.33%

Asian shares dip
Asian equities were softer in early trading amid increasing risk-off sentiment, as the clock ticks down to a tight US election and the Federal Reserve rate decision.

• S&P 500 futures were little changed as of 9:07 a.m. Tokyo time
• Hang Seng futures were little changed
• Japan’s Topix rose 0.1%
• Australia’s S&P/ASX 200 fell 0.6%
• Euro Stoxx 50 futures fell 0.4%

Oil falls
Oil prices eased slightly on Tuesday as markets braced for uncertainties from the U.S. presidential election, after rising more than 2% in the past session as OPEC+ delayed plans to hike production in December and eased supply concerns.


Stocks in F&O ban today
NIL

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 4,329 crore on Monday. DIIs bought shares worth Rs 2936 crore.

Rupee
The rupee on Monday fell 4 paise to a record low of 84.11 against the US dollar, tracking a weak trend in domestic equities and relentless foreign capital outflows

FII data
The net short of FIIs increased from Rs 1.53 lakh crore on Thursday to Rs 1.6 lakh crore on Friday.

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