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Domestic markets are expected to open flat on Friday, which will see the introduction of new monthly series in F&O segment on the NSE. Analysts expect the market to remain flat ahead of the Budget and advise investors to buy on dips.
Rahul Sharma, Co-owner , Equity 99, said: "We expect buying in the market, as we are expecting a positive budget. The volatility may continue, but one should hold on their positions and not sell in panic."
Huge FPIs selling
According to analysts, selling by foreign portfolio investors will take a fresh call after the Budget only. They have already offloaded shares worth over ₹25,000 crore in January. As their total selling stands at almost ₹70,000 crore in the last four months, analysts do not expect further big selling from FPIs.
“As the selling being absorbed quite effortlessly by domestic investors, both institutions and retail, the incremental selling will have less impact only,” said a Chennai-based market veteran.
Global markets
SGX NIfty at 17,150 indicates a flat opening for Nifty, as Nifty futures on Thursday 17,149.55 on the NSE. Most Asia-Pacific stocks rebounded sharply on Friday, led by Japan, Australia and Korean markets. The US stocks, though surrendered their initial gains to close in the red overnight, US stock futures trade in the green in early deal on Friday.
Vinod Nair, Head Of Research at Geojit Financial S,ervices, said: "The hawkish commentary of Fed was mostly in-line with expectations, while the global market is looking at the developments of Ukraine. Any moderation in geo-political situation will lead to bottom fishing".
However, according to him, the domestic trend will be muted in the short-term considering the Budget and State elections outcome.
"Systematic investment method should be a better strategy in this situation," he added.
Technical analysis
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: The market is making an attempt to reverse its down trend and still there is no confirmation of any bottom reversal forming at the lows. The formation of candle pattern with long lower shadows for Nifty and the presence of crucial support around 16800-16900 levels are indicating a chances of a sustainable upside bounce from here or from the lows. Immediate resistance is placed at 17300 levels.
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