Nifty, Sensex to open on a flat note, indicates SGX

Friday’s local markets are expected to open flat but analysts expect the healthy correction to continue into the latter part of the day. According to the analysts, the markets are now looking forward to the global developments for the direction as most of the domestic factors such as Q4 results, arrival of monsoon, RBI stance and other micro-economic activities have already been implemented.

Siddhartha Kimka, Head of Retail Research at Motilal Oswal Financial Services Ltd said, “Following the RBI policy outcome on Thursday, the markets saw some profits booked in the interest rate sensitive sectors, which sent indices lower.”

“The central banks of Australia and Canada surprised the market by increasing interest rates by 25 basis points. This added uncertainty about the decision of the US Central Bank at its upcoming meeting next week. Now that major domestic events are delayed, the markets will take cues from global events.

The overall structure remains positive with Nifty gradually moving towards earlier-in-life highs, supported by lower volatility, healthy macros and steady manufacturing division buying, he said.

SGX Nifty at 18750 indicates a positive opening for local markets as Nifty futures contracts closed on Thursday at 18709. Overnight, US stocks closed all major indices in the green led by Nasdaq. According to the track, stocks across the Asia-Pacific region also rose sharply in an early deal on Friday, hoping to spur Chinese authorities.

According to analysts, US stocks ended the bear market, with the S&P-500 recovering more than 20 percent from the October 2022 low on Thursday. This brings an end to the bear market that started in January 2022. With US stocks entering a bull market, analysts expect foreign portfolio investors to adjust their flow into Indian markets.

According to Rupak D, Chief Technician at LKP Securities he said: “The Nifty Index witnessed periods of selling pressure throughout Thursday. Despite this, ‘put’ writers succeeded in preventing the index from falling below the 18600 level. If Nifty manages to stay above This level, the trend is likely to remain sideways to positive.However, there is resistance noted at 18800-18900 levels on the higher end.”