Domestic markets are expected to open with a negative bias on Friday amid mixed global cues. With all eyes on the US Federal Chief’s speech at the Jackson Hole symposium on Friday (around 1130 pm IST), experts believe another lacklustre day at Dalal Street.
Though the US stocks slipped overnight ahead of Jerome Powell’s testimony, stocks across the Asia-Pacific region are up marginally.
Nifty futures at Gift City, at 24,815, indicate that the Nifty may open marginally down. Nifty futures on the NSE closed at 24,840 on Thursday.
Nandish Shah, Deputy Vice President - Retail Research at HDFC Securities, said: Minutes from the latest US Fed policy meeting showed several officials acknowledged a conceivable case for cutting rates, before the central bank voted to keep them steady. Chair Jerome Powell will have a chance to offer investors further clarity when he speaks in the Jackson Hole economic symposium on Friday.
Mandar Bhojane, Research Analyst at Choice Broking, says that as investors look ahead, all eyes are on key economic indicators from the US, including unemployment claims, existing home sales, and PMI data. “These will be crucial in gauging the Federal Reserve’s next steps, with Fed Chair Jerome Powell’s upcoming speech at Jackson Hole expected to provide further insights into the timing of potential rate cuts,” he added.
Derivative trading, however, indicates caution for the domestic market, said analysts.
According to Dhupesh Dhameja, Technical Analyst at SAMCO Securities, The options market reflects a bearish sentiment, with increased Call writing compared to Puts, especially as the index nears its major resistance levels where significant Call positions have been established. “Substantial open interest is noted at the 24,800 Call (2.71 crore contracts) and the 24,700 Put (85.68 lakh contracts), with considerable activity around the 24,750 Puts and 24,850-24,900 Calls. The Put-Call Ratio (PCR) has eased from 1.10 on Wednesday to 0.88, signalling a slight bearish shift as the index approaches these resistance levels. The Max Pain Point, the level with the most open options contracts, stands at 24,800, acting as a crucial level influencing the index’s movement,” he added
.The India VIX dropped by 2.49%, settling at 13.00 from 13.33 on Wednesday. This decline in VIX, remaining below 15, supports a positive market outlook and reinforces the “Buy on Dips” strategy, he further said.