Domestic markets are expected to open on a flat-to-positive note on Friday, tracking mixed global cues. As foreign portfolio investors (FPIs) continue their selling and domestic markets are equally on buy mode, benchmark indices are likely to move within in a range with positive bias, say analysts.
Gift Nifty at 22,310 indicates a flat opening for Nifty50 index as Nifty (Feb) futures closed at 22,243.25 and Nifty (March) futures at 22,383. As the markets are ruling at all-time high levels and are at elevated valuation, experts advise investors to remain cautious and advise profit taking.
Ashwin Ramani, Derivatives and Technical Analyst, SAMCO Securities, said, “Nifty recovers from lows as FPIs add to their longs in Index futures.
“The foreign portfolio investors’ (FPIs) long-short ratio rose from 40.76 per cent on February 20 to 42.33 per cent on February 21 as the FPIs continued to steadily build long positions in index futures for the fourth consecutive day.
Also read: Stocks that will see action today—February 23, 2024
“Strong put writing (bulls presence) was observed at the 22,200 strike in Nifty. However, the 22,250 strike saw significant call writing (bears presence) too. Nifty is likely to sharply move higher if it manages to go past the 22,250 mark and call writers (bears) square off their positions. The option activity at 22,250 strike will provide cues about Nifty’s future direction,” he added..
Global stocks are mixed with Korea, Australia and Taiwan markets are up even as Singapore and Hong Kong markets are down. Japan markets are closed today due to Emperor’s birthday.
According to Shrikant Chouhan, Head Equity Research, Kotak Securities, Nifty is set to move above 22500 in the near-term. However, on an immediate basis, 22300 will be the biggest hurdle. The strategy should be to buy on dips to 22150/22175 with a stop loss at 22050 levels.
“However, if it opens higher then buy the Nifty between 22300 and 22250 levels and keep a stop loss at 22100. A close above 22275 can make it easier to move towards 22500 or 22600. Below 22100, the Nifty may weaken to 22000 or 21900 levels,” he added.