Markets are likely to sustain the gains on Friday, as derivative segments saw a healthy rollover of long positions to May series. With global markets rallying strongly, analysts expect the momentum to sustain in Indian markets too.

SGX Nifty at 18050 indicates that Nifty may top 18000-mark sooner than later. 

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: The market surged to three months high, supported by the ongoing Q4 earning season and short squeeze in monthly derivatives expiry. Further, FIIs turning positive after seven consecutive days of selling added to overall positivity. We expect this up-move in Nifty to continue above the 18K zone. 

Equities across Asia also are up moderately, as US stocks scored handsome gains overnight.

Edward Moya, Senior Market Analyst, The Americas OANDA, said Wall Street is realising that you need a strong economy to keep stocks heading higher. Treasury yields headed lower after both the ADP private payrolls report and ISM Services Index both suggested the economy is weakening. Traders are turning defensive as utilities, healthcare, energy and consumer staple stocks are rallying,

“The reason we aren’t selling off harder is that many traders believe that even if the Fed doesn’t cut rates as soon as the market is pricing that in, they will cut more aggressively next year,” he added.

Even for domestic market corporate results are better than expected in most cases and for some, they met Street expectation only a few reported lower than expected numbers.

Ruchit Jain ,Lead Research ,5paisa.com, The April series completely belonged to the bulls as this series started with rollover of short positions from the past series. However, as the index breached above its hurdle of 17200 at the start of this series, traders started covering their short positions. As the month progressed, the market showed strength as buying emerged in the broader markets. “We witnessed short covering as well as fresh long build up which led to a sustained upmove and the index is just a kissing distance away now from reclaiming the 18000 mark,” he added.

With the long week-end ahead, (markets are closed on May 1), analysts are not ruling out profit taking in the second-half of Friday.

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