Domestic markets are expected to open firm on Wednesday amid positive global cues, said analysts. SGX Nifty at 18,400 indicates another gap-up opening for desi markets.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: “We expect market to continue its northbound movement and head towards 18350-18500 levels backed by positive global cues, FIIs being net buyers and continued earnings delivery. In the near term, now all eyes would be on inflation data of US and India which would set tone for Powel speech and RBI’s action in its next MPC.”
Experts believe, the Nifty is all set to hit all-time peak of 18,604 that it had register last year. Analysts said pre-Budget and year-end rally is likely to keep the bullish momentum, as the Q2 performance of India Inc was largely better than expected.’
US stocks firm
The US Stocks overnight closed on strong note as Americans head to the polls in what is expected to be an election that gives Republicans control of the House.
“It might take longer than election night to get a final conclusion on the House. The Senate is up for grab as there are five races (Georgia, Pennsylvania, Wisconsin, Nevada, and Arizona) that polls suggest are a toss-up. There is a chance that we won’t find out the Senate result for weeks if the Georgia seat requires a runoff election,” he added.
Following strong closing at the US stocks, equities across Asia-Pacific region are ruling firm in early deal on Wednesday.
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‘Q2 show is promising’
Mitul Shah - Head of Research at Reliance Securities, said: The Q2-FY23 earning season so far witnessed healthy revenue growth but higher inflationary pressure has impacted profitability.
For 260/BSE500 companies, revenue grew by 28 per cent YoY, EBITDA increased by 8 per cent YoY while PAT was down 7 per cent YoY. The latest 75 bps rate hike by the US Federal Reserve for the fourth straight time, suggests that central banks are still attempting to rein in inflation.
“We expect markets to remain volatile in the near term on account of deterioration in global macros and uncertainties prevailing in western economies due to high inflation. We believe that in long term, India would see a multi-year economic up-cycle led by strong macros, and various government initiatives,” he further said.
Technical indicators such as RSI and MACD are showing strengths to lead towards upside in the daily chart, said Choice INternational. Open interest (OI) Data indicates that on the call side the highest OI witnessed at 18400 followed by 18500 strike prices while on the put side, the highest OI was at 18000 followed by 17900 strike price, giving the broader range of market, it added.