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Volatile stock markets are expected to open on a weak note on Thursday, amid rising crude oil prices. SGX Nifty at 17,200 indicates a 70-point gap down opening for Nifty, as Nifty futures on Wednesday closed at 17,272. Most equities across Asia-Pacific region are down in early deal on Thursday, led by Nikkei, which slipped over one per cent. However, Australian stocks eked out very thin gains in early deal.
Overnight, the US stocks continued their downward spiral, with all the three major indices ended 12.-1.35 per cent down..
Rising US bond yields as Crude Nymex trading well over $115 per barrel ahead of weekly investor data.
"Volatility has continued to be the mainstay as the market is aware of some perils that could quickly snowball into a serious crisis going ahead. Despite some green shoots in the form of FIIs turning net buyers in recent trades, investors remain wary of the Ukraine conflict, rising US yields and fluctuating crude oil prices which can turn the tables," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
According to Mitul Shah, Head Of Research at Reliance Securities; trend in global equities, the movement of rupee against the dollar and crude oil prices will dictate trend in the near term.
"The Indian economy is in good shape, given the underlying stellar corporate earnings momentum, improving asset quality of banks and levers in place for capex cycle revival," he said, adding "DII participation can revive the markets gradually once prevailing clouds of uncertainty disappear"
Technically, also market appears vulnerable, said analysts.
“A long negative candle was formed on the daily chart after opening higher. Technically this indicates a presence of strong resistance around 17500 levels. However, the pattern of the last four sessions signal formation of alternative candle pattern of positive and negative, which ideally indicates a broader range movement around 17400-17000 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
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