Comments
Domestic markets are expected to open on a flat note on Friday but analysts expect healthy correction to continue in the later part of the day. According to analysts, markets now look to global developments for direction as most domestic factors such as Q4 results, monsoon arrival, RBI stance, and other microeconomic activity were already played out.
Siddhartha Khemka, Head Retail Research, Motilal Oswal Financial Services Ltd said, “Post the RBI policy outcome on Thursday, markets saw some profit booking in the interest rate-sensitive sectors, which dragged the indices down.”
“The Central Banks’ of Australia and Canada surprised the market by increasing interest rates by 25bps. This has added some uncertainty over the US Central Bank’s decision in its upcoming meeting next week. Now with major domestic events behind, markets will take cues from global events,” he said.
Also read
- Also read: Marico stock hovering near 52-week high
The overall structure remains positive with Nifty gradually moving towards its previous lifetime high, supported by lower volatility, healthy macros, and consistent FII buying, he further said.
SGX Nifty at 18,750 indicates a positive opening for domestic markets as Nifty futures on Thursday closed at 18,709. Overnight, the US stocks all the major indices ended in the green, led by Nasdaq. Following track, equities across the Asia Pacific region are also up sharply in early deal on Friday, on hopes of stimulus by Chinese authorities.
According to analysts, the US stocks ended the bear market, as the S&P-500 recovered over 20 per cent from October 2022 low on Thursday. That brings to an end the bear market that began in January 2022. With the US stocks entering a bull market, analysts expect foreign portfolio investors to moderate their inflow into Indian markets.
According to Rupak De, Senior Technical at LKP Securities said, “The Nifty index experienced periods of selling pressure throughout Thursday. Despite this, the Put writers were successful in preventing the index from falling below the 18,600 level. If the Nifty manages to stay above this level, the trend is likely to remain sideways to positive. However, there is resistance observed at the 18,800-18,900 levels on the higher end.”
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.