Another disappointing day for the domestic markets amid weak global cues. While the market is expected to open flat, analysts expect profit-booking at higher levels.
With both foreign portfolio investors and domestic institutional institutions turning buyers, analysts expect a slight downside from current levels.
strong fund flow
Kotak Cherry CEO Srikanth Subramaniam said Indian equity markets are resilient and robust when compared to volatility around the world.
“We are also the recipient of strong inflows from FIIs and our domestic SIP book remains strong. This is a clear indicator of the world’s faith in the Indian growth market,” he said.
All eyes are on Nifty to see if it will breach its all-time high today. The index is clearly inching closer to its all-time high of 18,887.60, which it recorded on December 1, 2022. On the other hand, BSE Sensex made a fresh peak at 63,588.31 on Wednesday.
‘be cautious’
“However, one should keep in mind that flow is usually an expression of what is expected which may differ from reality. While this is a jubilant moment for all growth investors in India, it is also a time to be extra cautious given the rich premium and valuations. Constant staggered investing can be a way of balancing risk and reward,” Subramaniam cautioned.
SGX Nifty indicates initial decline at 18,870 as Nifty futures closed at 18,896.75 on Wednesday. Asian shares were mixed, with Japan, Australian and Chinese markets down, while Korea and Taiwan were up in early deals on Thursday.
speak powell
Overnight, US stocks fell as Fed Chairman Jerome Powell’s testimony in the House reaffirmed the Fed’s threat of higher rates to combat inflation.
“Wall Street shouldn’t have been surprised by Powell’s commitment to eliminating inflation, but swap futures are still pricing in just another rate hike. Powell reiterated that the economy is strong but inflation remains high,” said Edward Moya, senior market analyst at Americas OANDA.
The Fed is clearly nowhere near the end of its tightening cycle, and if other central banks look set to hike more than a couple of rates, it could make it easier for the Fed to remain accommodative. Powell said there is still a long way to go to bring down inflation and that could mean they won’t stop until the fall.
technically
Rupak Dey, Senior Technical Officer, LKP Securities said, “The Nifty index experienced largely flat and sideways movement on Wednesday.
Despite this, the overall trend remains positive as the index managed to hold above the 18,800 level, which is considered as immediate support. In the short term, an important support level has been seen at 18,700 where a large number of put writers have made their presence felt, he said.
“It shows that there is a lot of interest and support in buying at that level. On the higher side, resistance is noted at 19,000, where call writers are waiting for the price level to defend. This indicates that there could be selling pressure and a potential obstacle to the index’s upside. A move above 19,000 could add further momentum to the market,” he said.,
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