Domestic markets are expected to open weak on Thursday. NSE-SGX Connect futures at 19,484 indicates a marginal decline as Nifty futures on Wednesday closed at 19,466.85.

Analysts expect profit taking even as foreign portfolio investors continue to pump in money.

Sunil Damania, CIO, MarketsMojo, said, “The financial markets are currently undergoing what market analyst, Ed Yardeni, refers to as the “mother of all melt-ups” (MAMU). This phenomenon refers to a sudden and significant increase in the market within a short period of time, in contrast to earlier unfavorable feelings.

According to him, the Nifty gave returns of 6 per cent in the first half. The recent few years’ tendency suggests that the Nifty gives higher returns than the first half. We forecast that the Nifty would reach 20,100 by 2023 end. We continue to maintain the same target, implying another 5 per cent rise in the next six months. However, this journey is likely to be non-linear. Profit booking will occur in several counters, as well as sector rotations. Making money may not be as simple as we experienced in the first half when the market fell in the first quarter and then rose in the second.

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On Wednesday, the market-capitalisation of all BSE-listed stocks crossed ₹300-lakh crore. 

“Q1 FY24 has ended and investors await the earnings results for further cues. The rate pause decision by the Reserve Bank of India and the US Federal Reserve, in view of declining inflation, breathed new life into markets. Investor interest was reclaimed by a revival of the monsoon and positive sentiment in global markets,” said Mitul Shah - Head of Research at Reliance Securities.

However, global stocks are down in early deals on Thursday in the Asia Pacific region, tracking the overnight weakness in the US stocks. This trend is likely to continue at domestic market as well, said analysts.

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities, “The strong rally seen in Nifty in the last five sessions has taken a breather, it seems. The maximum call open interest (OI) for Nifty is placed at 19,500 Strike, which will act as an immediate resistance for Nifty. Unless call writers enter and put writers exit from the 19,500 Strike, Nifty is most likely to continue its upward move.

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