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Domestic markets are expected to open on a negative note on Friday, amid indecisiveness in global markets. With the Adani-group news refusing to die down after Hindenburg Research’s scathing reports, analysts expect the market to move in a narrow range with stock-specific action.
Nifty futures at the Singapore Exchange is ruling at 17,850, signaling a 100-point gap down opening for the Nifty; Nifty futures closed at 17,945 in the domestic market on Thursday.
On the global front, inflation and rate hike concerns continue to dog the market, while on the domestic front, persistent FII selling and a mixed set of corporate results have kept trading lacklustre, as investors await fresh triggers for direction, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd..
Stocks in Asia were mixed in early deals on Friday after US equities fell for a second day as investors fear firm rates for a prolonged period, even as the US Federal Reserve battles inflation. Shares dropped in South Korea and Australia, but Japan stocks eked out modest gains.
According to market experts, the intense battle between bulls and bears has kept the market in a range. However, the undertone remains bullish as the broader markets have been witnessing buying interest and the momentum readings have given a positive crossover recently.
However, the only cause for concern currently is heavy selling by foreign portfolio investors, they added. Their activity remained subdued on Thursday.
“FIIs have short heavy positions and have started covering some of their short positions in the index futures. But still, their ‘Long Short Ratio’ is around 19 per cent and any further covering could lead to a positive breakout in the Nifty,” said Ruchit Jain, Lead Research, 5Paisa.com.
“The Nifty index has been trading in a falling channel and has recovered from the support-end since the Budget day low,” he said and added: “The resistance end is seen around the 18000 mark, and once this level is taken out, we would see a gush of buying interest.”
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