GIFT Nifty falls over 150 points as AI stocks retreat

GIFT Nifty slipped more than 150 points on Friday morning, signalling a weak start for Nifty 50 and Sensex as a broad selloff in Asian artificial intelligence and semiconductor stocks triggered profit booking after a strong recent rally.

The decline tracked sharp losses in Japan, South Korea and other key Asian markets, even as domestic analysts said the short-term trend for Nifty remains positive while the index holds above key support near 23,800.

Market overview

Index / Contract	[Intraday] Move & % Change	Comments
GIFT Nifty	-150 pts plus (approx.)	Signals weak open for Indian equities on global tech selloff.
Nikkei 225 (Japan)	-4.5%	Hit by technology and AI related profit booking.
Kospi (South Korea)	-6.8% (intraday)	Dragged by semiconductor heavyweights Samsung Electronics and SK Hynix.
Hang Seng (Hong Kong)	-1.7%	Declined with regional tech weakness.
Shanghai Composite (China)	-1.4%	Tracked broader Asian risk-off mood.
Taiex (Taiwan)	-3.6%	Impacted by correction in chip and AI names.
Australia benchmark	Slightly higher	Only major Asia Pacific market to edge up.

Note: figures are approximate; final exchange data not available at time of publication.

• GIFT Nifty weakness follows Thursday’s volatile domestic F&O expiry session.
• Global risk sentiment turned cautious after a multi-month rally in AI linked stocks.
• Profit booking in technology and semiconductor shares led regional declines.
• Mixed overnight close on US indices added to uncertainty for Asian markets.

Global tech and AI stock action

Stock / Group	Market	Movement	Notable Factor
Samsung Electronics	South Korea	-7.0%	Semiconductor heavyweight sold off amid AI rally unwind.
SK Hynix	South Korea	-6.6%	Memory chip maker declined with broader chip weakness.
SoftBank Group	Japan	More than -13%	Hit by exposure to technology and AI ecosystem.
Advantest	Japan	Nearly -11%	Semiconductor equipment maker corrected sharply.
Apple	United States	Declined (unspecified)	Fell after announcing price increases across products.

Note: figures are approximate; final exchange data not available at time of publication.

• Asian technology stocks bore the brunt of selling pressure.
• Investors locked in gains after strong recent performance in AI related counters.
• Sentiment weakened despite better than expected results from US chipmakers.
• Qualcomm and Micron earnings beat expectations, yet tech remained under pressure.

US market cues

Market/Asset	Movement	Notes
Dow Jones Industrial Average	Up (unspecified)	Closed higher in a mixed US session.
S&P 500	Down (unspecified)	Declined as technology shares lagged.
Nasdaq Composite	Down (unspecified)	Underperformed amid pressure on large tech names.

Note: figures are approximate; final exchange data not available at time of publication.

• Wall Street ended mixed, with divergence between industrials and tech heavy indices.
• Technology stocks in the US faced selling despite positive chip earnings.
• Apple weakness added to global tech sentiment deterioration.

Technical outlook for Nifty

Metric / Level	Value / Zone	Context
Key support	23,800	Level to watch for sustaining positive short-term trend.
Immediate upside target	24,500	Resistance zone identified by technical analysis.
50-day EMA	Above current holding zone	Nifty trading above this moving average.
RSI signal	Positive crossover	Indicates strengthening momentum on daily charts.

• Nifty failed to break above a falling trendline on the daily timeframe in Thursday trade.
• Despite the failed breakout, the short-term structure is assessed as positive.
• Sustaining above the 50-day exponential moving average supports a bullish bias.
• A break below 23,800 could challenge the current positive stance.
• A move toward 24,500 remains the immediate upside objective if support holds.
• “The trend is likely to stay positive as long as the index holds above 23,800, while 24,500 remains the immediate upside target” Rupak De, Senior Technical Analyst, LKP Securities.

Implications for Sensex and Nifty open

• The sharp fall in GIFT Nifty points to a gap-down start for Nifty and Sensex.
• Weak global cues and tech valuation concerns may weigh on early trade.
• Domestic traders are likely to track Asian semiconductor and AI stock moves closely.
• Richly valued technology stocks could see further profit booking if global pressure persists.
• Broader market direction may hinge on whether Nifty defends the 23,800 support.
• Volatility could remain elevated after the recent BSE F&O expiry session.

Sectoral and thematic takeaways

Sector/Theme	Direction (approx.)	Key Drivers
Technology / IT	Likely down at open	Global tech and AI stock correction, Apple weakness.
Semiconductors / hardware	Likely down at open	Sharp declines in Samsung, SK Hynix, Advantest.
Broader cyclicals	Mixed	Supported by still positive domestic Nifty trend above support.

Note: figures are indicative; sectoral moves will depend on actual cash market open.

• Indian IT and hardware linked names may mirror global tech sentiment.
• Domestic investors could rotate into sectors less exposed to global AI valuations.
• Short term traders may focus on index levels rather than sector bets initially.

Key market statistics and watchpoints

Statistic	Value/Change	Context
GIFT Nifty gap indication	Over -150 pts	Suggests lower open for Nifty 50 and Sensex.
Global AI stock tone	Negative	Profit booking after strong multi month rally.
US tech sentiment	Cautious	Mixed indices despite strong chip earnings.

• Traders will monitor whether selling in AI names extends beyond one session.
• Any recovery in US tech futures could temper downside for Indian IT stocks.
• Domestic flows and stock specific news may offset some global pressure intraday.

FAQs

Q: Why did GIFT Nifty fall over 150 points today?

• GIFT Nifty tracked a broad selloff in Asian AI and semiconductor stocks, where indices like Japan’s Nikkei and South Korea’s Kospi dropped sharply, prompting profit booking and signalling a weak open for Indian equities.

Q: What are the key Nifty levels to watch after this global selloff?

• The critical support is near 23,800, while the immediate upside target is around 24,500; the short-term trend is viewed as positive as long as Nifty holds above the support and trades above its 50-day exponential moving average.

Q: How are global technology and AI stocks influencing Indian IT shares?

• Sharp declines in global tech names such as Samsung Electronics, SK Hynix, SoftBank Group and Apple have weakened sentiment toward technology and AI related plays, which could trigger profit booking in Indian IT and hardware stocks at the open.

Frequently Asked Questions

Why did GIFT Nifty fall over 150 points today?

GIFT Nifty dropped more than 150 points as Asian AI and semiconductor stocks sold off sharply, prompting profit booking and signalling a weak open for Indian indices.

What key Nifty levels are traders watching now?

Traders are watching support near 23,800 and an immediate upside target around 24,500, with the trend seen as positive while Nifty holds above the 50-day exponential moving average.

How did global markets move ahead of the Indian open?

Japan’s Nikkei 225 fell 4.5 percent, South Korea’s Kospi dropped as much as 6.8 percent, other Asian indices declined, and US markets closed mixed with the Dow up but the S&P 500 and Nasdaq lower.