Market to open down on weak global sentiment

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Domestic markets are expected to open on a weak note amid weak global markets. Gift Nifty at 25,010 signals a gap-down opening as Nifty Sept futures on NSE closed at 25,133. According to analysts, today being the expiry day of August contracts at the NSE, the market will be remain volatile, especially in the later part of the day.

Meanwhile, equities in the Asia-Pacifiic region are down as US stocks slipped following underwhelming earnings from Nvidia Corp.

South Korea’s Kospi Index slid more than 1 per cent as chipmakers Samsung Electronics Co. and SK Hynix Inc. slumped. Japanese shares also opened lower. Futures on the Nasdaq 100 Index were down 1 per cent in Asia as Nvidia slumped more than 8 per cent in post-market trading following a sales forecast that disappointed some on Wall Street. 

Vinod Nair, Head of Research, Geojit Financial Services, said: A consolidation in the US 10-year bond yield and an inflow of FIIs kept domestic market sentiment optimistic. “However, valuation remains a near-term deterrent, which will be further tested based on the upcoming India Q1 FY25 GDP data this week. On the other hand, investors are giving more emphasis to defensive bets, which is evident with the outperformance in IT and pharma stocks,” he added.

Dhupesh Dhameja, Technical Analyst, SAMCO Securities, the options market remains bullish, with more Puts being written than Calls as the index continues to hold above the 25,000 level. Significant open interest at the 25,000 Put (1.19 crore contracts) and the 25,500 Call (91.12 lakh contracts) points to a narrow range battle between buyers and sellers, he said. The Put-Call Ratio (PCR) has increased from 1.11 to 1.12, underscoring the bullish structure dominated by Put writers over the past two trading days, he further said.

India VIX saw a marginal rise of 2.33%, to 13.95 from the previous 13.63. “Despite this mild fluctuation, with VIX remaining below 15, the outlook remains positive, reinforcing a “Buy on Dips” strategy,” he added.