Indian markets poised for gap-down opening as FPIs sell ₹74,000 crore worth of equities in October
Domestic markets are expected to open weak on Friday despite stable global markets. International stock markets are mixed after the ECB cut rates further by 25 bps. Stocks across Japan, Taiwan, and Singapore are up in early trading on Friday. However, Gift Nifty points at 24,730, indicating a gap-down opening of 100 points.
Analysts expect the downtrend to continue due to selling by foreign portfolio investors. So far in October, FPIs sold nearly Rs 74,000 crore worth of shares in the cash segment, a record.
Trading in the F&O market also indicates a negative signal, said analysts.
Dhupesh Dhameja, Technical Analyst, SAMCO Securities, said: The options market continues to reflect a bearish sentiment, with call writers (Bears) dominating put writers (Bulls). This highlights traders are adopting a cautious approach. Significant open interest at the 24,750 strike calls (2.32 crore contracts) and 24,750 puts (2.21 crore contracts) indicates a bearish bias. “Enhanced call writing at 24,800-25,000 suggests sellers are adjusting to lower levels, while put unwinding signals emerging bearish momentum.
The India VIX increased by 2.57% to 13.39, indicating a rise in market volatility and growing uncertainty, which could lead to increased price fluctuations. This makes it important for traders to remain cautious. Open Interest (OI) data shows the highest OI on the call side at the 24,900 and 25,000 strike prices, signalling strong resistance levels. On the put side, OI is concentrated at the 24,700 and 24,500 strike prices, highlighting these as key support levels.. The put-call ratio (PCR) dipped to 0.51 from 0.54, indicating increased control by call writers and suggesting the index is entering oversold territory. The max pain level at 24,800 remains a crucial point for future movements,” he added.
According to Chandan Taparia, Head, Equity Derivatives & Technicals, Wealth Management, MOFSL, said The decline in the long-short ratio from 80% to 33% along with FIIs selling over ₹60000 crore indicates continued bearish pressure in the market. “Overall as per price structure, till Nifty holds below 25000 zones, bounce could be sold for the downside target towards 24444 zones. On Weekly basis it has formed bearish candle with a long upper shadow indicating continued pressure from the upper levels,” he added.
Meanwhile, nearly two dozen companies, including Jio Financial, ICICI Lombard General Insurance, and Tata Consumer. L&T Finance, Filesadmin.co Entertainment and Aether Industries will declare their results today.,