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

Domestic markets experienced a decline for the third consecutive session amidst a broad-based selling. Rising domestic inflation data released this week and continued FII selling weighed on the market sentiments.

"This along with disappointing Q2 earnings from major companies added to the pressure. Looking forward, the market is expected to remain range-bound due to mixed global cues and a lack of domestic triggers," 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 121.50 points, or 0.49 per cent, at 24,738.50, signaling that Dalal Street was headed for negative start on Thursday.

• Tech View: The RSI is showing a bearish crossover and is declining. However, this may not be the ideal level to initiate short positions, as the index has experienced a steep correction and is near a double-bottom support, which could trigger a near-term recovery toward 25,000
• India VIX: India VIX, which is a measure of the fear in the markets, rose 2.57% to settle at 13.39 levels.

Dow gains
The Dow Jones Industrial Average advanced on Thursday to its fourth record close in the last five sessions, as stronger-than-expected monthly retail sales indicated a robust U.S. consumer and TSMC's upbeat forecast buoyed chipmakers' stocks.

• Dow up 0.37%,
• S&P 500 down 0.02%,
• Nasdaq up 0.04%

Asian shares mixed
Shares in Japan rose, helped along by a weaker yen, while equities in Australia and South Korea fell. US futures were flat after the S&P 500 retreated from an intraday record Thursday to end the session little changed.

• S&P 500 futures were little changed as of 9:19 a.m. Tokyo time
• Hang Seng futures fell 0.3%
• Japan’s Topix rose 0.6%
• Australia’s S&P/ASX 200 fell 0.7%

Oil rises
Crude oil futures inched higher on Friday, supported by a surprise drop in U.S. oil inventories and simmering Middle East tensions, but prices were headed for their biggest weekly loss in more than a month on worries of lower demand.

Dollar up
The dollar headed for a third weekly gain in a row on Friday, helped by a dovish European Central Bank and strong U.S. data that is pushing out expectations for how fast U.S. rates can fall, particularly if Donald Trump wins the presidency.

Stocks in F&O ban today

1) Chambal Fertilisers

2) SAIL

3) Hindustan Copper

4) RBL Bank

5) Granules

6) Manappuram

7) PNB

8) GNFC

9) IDFC First Bank

10) Tata Chemicals

11) IEX

12) Nalco

13) LTF

14) Bandhan Bank

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 7,421 crore on Thursday. DIIs bought shares worth Rs 4980 crore.

Rupee
Rupee traded in a narrow range and settled for the day lower by 4 paise to 84.06 against the US dollar on Thursday, pressured by foreign fund outflows, a negative trend in domestic equities and broad strength of the American currency.

FII data
The net short of FIIs increased from Rs 1.68 lakh crore on Wednesday to Rs 1.69 lakh crore on Thursday.

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