Stock market today: GIFT NIFTY futures indicate a cautious start for Indian markets on February 27

GIFT NIFTY Futures traded 33 points lower on Thursday morning, indicating a cautious negative opening for Indian markets. The global market cues remain mixed as US markets closed mixed and Asian markets traded lower on Thursday morning. In addition, the gold and crude oil prices traded lower amid de-escalation in geopolitical risks.

US markets

The US markets closed in red on the Dow Jones as Donald Trump warned of 25% tariffs on European auto imports and confirmed imposing 25% tariffs on Mexico and Canada starting April 2. Secondly, Nvidia's earnings came in above estimates as revenue jumped 80% to $38 billion in the December quarter. Shares of Nvidia closed 3.6% higher on Wednesday night ahead of the earnings.

Asian markets

The Chinese and Hong Kong markets continued to outperform peers, trading in green on Thursday morning. Meanwhile, the Japanese and Korean indices traded in red with little loss. Chinese and Hong Kong indices have continue to hit multi-year high levels as economy goes through major structutral changes of increased liquidity inflow, lower government crackdown, inclusive business environment and cheaper valuations.

Crude oil price

The crude oil prices traded to December lows as de-escalation in geopolitical risks in the Russia-Ukraine war weighed down on the prices. The easing of sanctions on Russia is expected to boost global supply, and weaker economic conditions in the world’s largest economy, the USA, remain key headwinds for oil prices. Brent crude oil prices traded near $73 per barrel, and WTI crude oil prices fell below $69 per barrel.

FII and DII data

The foreign investors sold another ₹3,529 crore worth of Indian equities on Tuesday and held on to short positions worth 2 lakh contracts on the short side in the derivatives market. On the other hand, the domestic investors added equities worth ₹3,030 crore.

Chart Check

NIFTY50 and SENSEX eye support on monthly 20 SMA levels of 22440 and 74,175 after a more than 14% fall from the record highs. These levels become crucial on a monthly closing basis as they decide future course of Indian markets.