Domestic markets are likely to to open on flat note on Thursday amid mixed global cues. Continuous selling by foreign portfolio investor to keep market under pressure though counter buying by domestic investors to provide support, said analysts.
Amidst this, the focus has now shifted to financial performance of India Inc.
Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said: “Markets are consolidating and witnessing a dip at a higher zone amid relentless selling by FIIs (₹63,875 crore in Oct so far) & muted results from index heavyweights. We expect this consolidation to continue amid mixed global cues and a lack of domestic triggers. Index-heavy weights like Infosys, Axis Bank, LTI Mindtree, Wipro, and Nestle are likely to be in focus as they announce their Q2 number on Thursday. Also, globally, the focus will be on Europe’s interest rate decision along with inflation numbers. Apart from that, the US retail sales and China’s Q3 GDP are also significant.
Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher, said: With the festive season approaching, consumer spending is expected to rise, benefiting retail and consumer goods. Festive demand and strong earnings could boost market sentiment in the weeks ahead. At PL, our base case 12-month Nifty target is 27,867.
Gift Nifty at 25,040 indicates a flat opening, while Asian stocks are trading mixed in early Thursday deals.
Dhupesh Dhameja, Technical Analyst, SAMCO Securities, said: Nifty’s outlook remains cautiously bearish, confined between the 25,250 resistance and 24,900 support levels. Substantial open interest at these levels signals a standoff between buyers and sellers. A decisive breakout above 25,250 could attract buyers, potentially driving the index up to 25,500, while a failure to clear this resistance may present buying opportunities on dips as long as the index remains above the crucial support at 24,900. A break below 24,850 could shift momentum in favour of sellers, potentially pulling the index down to 24,500.