Domestic markets are likely to on open positive note on Friday. Markets that were reeling under pressure following indictment of Gautam Adani by the US court are expected to see a positive opening, thanks to strong global cues and vigorous buying by domestic institutions. Gift Nifty 23,440 signals nearly a gain of over 100 points for Nifty at start.

Continuous selling by FPIs, weak Q2 performance by India Inc and slowdown in economic activity will keep market under pressure, said analysts. 

However, global investment advisory firm Goldman Sachs said it expects the market to remain range-bound over the next 3 months, with Nifty 3 month target of 24000 (+2 per cent) and a back-loaded recovery to its 12 month target of 27,000, driven by underlying earnings growth.

“While India’s strong long-term structural growth story remains intact, growth has been cyclically slowing and impacting profits, which had led the brokerage to downgrade its view on India equities to marketweight about a month back. It exoects India’s GDP growth to decelerate to 6.3 per cent yoy, on continued fiscal drag and slower credit growth, which should continue to weigh on consensus earnings per share expectations,” it said.

Analyst at Emkay Global Financial, after meeting  a wide range of policy voices on their two-day trip to Delhi earlier this week, said while there has been some acknowledgment on slower growth momentum, there are no significant worries and catalysts are present to help partly offset the growth slowdown. “A likely recovery in government capex in 2HFY25 is expected to be followed by some interventions to boost the flagging consumption trends. Longer term, reforms remain imperative to sustain growth at consistent levels,” they said.

Gaurav Garg, Research Analyst at Lemonn Markets Desk, said:  From a macro data perspective, bank loan and deposit growth data have largely come along the expected lines. RBI in its monthly bulletin indicated that economic growth was expected to pick up in the current quarter after a slowdown in July-September, helped by a rebound in private consumption during the festive period. Investors focus will be on the flash PMI surveys along with global developments like Russia Ukraine and Middle East.

Derivative trading still points a negative outlook said analysts.

Chandan Taparia, Head, Equity Derivatives & Technicals, Wealth Management, MOFSL, said:  FIIs selling pressure is continues as Long Short ratio is hovering around 25 per cent level. India VIX is up by more than 7 per cent in this week which increasing some more volatility. Overall as per price structure, till Nifty holds below 23,500 zones, bounce could be sold for the downside target towards 23,000 zones.

“On option front, Maximum Call OI is at 24,000 then 24,500 strike while Maximum Put OI is at 23,000 then 22,500 strike. Call writing is seen at 23,300 then 23,500 strike while Put writing is seen at 23,300 then 23,400 strike. Option data suggests a broader trading range in between 22,800 to 23,800 zones while an immediate range between 23,100 to 23,550 levels,” he added.

Meanwhile, Asian stocks are up in early deal on Friday in the range of 0.3-1.5 per cent.

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