Indian equity markets are set for a cautious start on Thursday

Mumbai, June 10: Indian equity markets are set for a cautious start on Thursday, as Gift Nifty futures retreated sharply in Wednesday’s extended evening session, sliding to the day’s low of 23,180 after earlier touching an intraday high of 23,445 — a swing of 265 points that underscores the fragile nature of sentiment heading into the next session. 

The near-month Gift Nifty futures contract for the June 30, 2026 expiry was last quoted at 23,205.50, up 21 points or 0.09%, while the July 28, 2026 contract was trading at 23,345.50, gaining 68.50 points or 0.29%, as the session was still active at the time of writing. The intraday narrative, however, told a more cautious story: after opening at 23,206, the contract climbed to a high of 23,445 in the late morning, before a sustained sell-off through the afternoon dragged it all the way back to the session low of 23,180 — effectively erasing all the day’s gains and then some. The inability to hold the 23,300 level, which had served as support in the previous session, is likely to keep Thursday’s opening tone measured. 

The intraday chart presents what technicians would describe as a classic reversal from the highs — a sharp morning rally followed by a gradual but decisive erosion through the afternoon session, with the contract settling near the day’s floor as the clock approached 15:00 IST. The failure at the 23,445 high is particularly notable given that this level sits close to the upper boundary of the near-term consolidation range that the Nifty 50 has been navigating for the past two weeks. A decisive hold above 23,200 in the early hours of Thursday’s session will be the immediate test for bulls seeking to prevent a drift lower toward the 23,000 support zone. 

Wednesday’s domestic session had offered a broadly constructive backdrop, with the Nifty 50 posting healthy gains led by FMCG, private banking, and select pharma stocks. The Nifty Private Bank index added 1.13%, while Nifty FMCG was the top sectoral gainer at 1.78%, reflecting investor preference for domestically oriented businesses that are less exposed to global macro turbulence. However, Gift Nifty’s sharp afternoon fade suggests that whatever enthusiasm was generated during the regular session was not carried over convincingly into the derivative market’s extended trade. 

The broader macro environment continues to present a mixed picture for risk assets. Geopolitical tensions in West Asia remain an overhang, with the Iran-Israel conflict keeping crude oil markets on edge and adding to the uncertainty around India’s import bill and current account trajectory. Any fresh escalation overnight could amplify the cautious mood that Gift Nifty’s late-session weakness is already hinting at.  

Traders will be monitoring global cues closely before Thursday’s opening bell, with particular attention to how US equity futures and Asian early movers respond to overnight developments. 

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