The domestic markets are expected to open on a flat note, global sentiment and trading on Nifty at Gift City indicate. However, due to expiry of monthly F&O contracts at the National Stock Exchange, analysts expect volatility to rise during the day, especially on individual securities. 

GIFT Nifty recorded a new milestone on September 24 of achieving the highest open interest of $20.84 billion, surpassing its previous open interest record of $18.50 billion on September 23. The continuous increase in open interest highlights broader participation and reflects the trust of global investors in GIFT Nifty, said NSE in a statement. 

Trading turnover on NSE IX has been growing exponentially since the commencement of full-scale operations of GIFT Nifty on July 3, 2023. GIFT Nifty has witnessed a total cumulative volume of over 26.61 million contracts, with total cumulative turnover of $1.15 trillion till September 24, 2024, the statement further added.

Though the undertone remans bullish, valuation is still a concern, said analysts.

Osho Krishnan, Sr. Analyst, Technical & Derivatives of Angel One, said: the bulls on D-Street continue to charge ahead relentlessly. Despite a subdued start and initial lack of follow-up buying, the last half-hour has been eventful, with the Nifty surging beyond the 26000-mark, further extending its winning streak. Eventually, the Nifty50 secured a closing above the 26000 zone to clock a new high with gains of 0.25 per cent.

“We remain sanguine with strategic risk management and would advise to keep booking profits at the elevated terrain. Additionally, sector churning is prudent and requires exclusivity in stock selection for outperformance. Simultaneously, it is advisable to stay vigilant to global developments,” he added.

Meanwhile, global stocks are up in early deals on Thursday. The Japanese and Korean markets are up over 2 per cent.

 Vinod Nair, Head of Research, Geojit Financial Services, said: After range-bound trade, the benchmark indices inched higher towards close, led by power and banking stocks, while mid- and small-cap indices experienced corrections driven by valuation concerns. “The domestic market may face short-term challenges owing to a decline in FI inflows and the shift of funds to other emerging markets due to their cheap valuation. Meanwhile, gold, as a safe-haven asset, gained further appeal amid escalating tensions in the Middle East and the prospect of lower interest rates,” he added.

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