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Indian benchmark indices, the Sensex and Nifty, are expected to open weak amid mixed global cues. Analysts expect selling pressure to continue from foreign portfolio investors while the focus will be on results. They added that tomorrow’s monthly settlement at F&O will keep volatility high while long weekends will keep local participation low.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said Global sentiments turned cautious after Fitch Group’s statement that South Asian economies would be most affected amid rising hostilities in the Red Sea due to Houthi attacks and India’s economic forecast faces a significant risk on account of a prolonged spell of disruptions.
Further, BoJ followed China and kept interest rates unchanged, he said.
“Given weak global cues and mixed set of earnings released so far, the market is likely to consolidate and may drop a little further till the next set of fresh positive triggers, he added.
Gift Nifty at 21250 signals downward bias 21354
According to Pravesh Gour, Senior Technical Analyst, Swastika Investment Ltd.
The Nifty index experienced a breakdown marked by a marubozu candle pattern, accompanied by significant trading volume. “Despite attempts, it couldn’t establish control above the 20-Day Moving Average (20-DMA) and underwent a sharp decline, resuming its corrective trajectory. There’s a likelihood of a test at the 50-DMA at 21000, with the subsequent support level at 20800,” he said.
On the positive side, encountering resistance at 21500 is anticipated, with the 20-DMA around 21700 posing a key challenge as an immediate hurdle, he said.
According to him, Bank Nifty achieved its target by breaking down from a head and shoulder formation, breaching the neckline support at Rs. 46950. “This underperformer faced rejection at its 50-day Moving Average (50-DMA) and fell below the 100-day Moving Average (100-DMA). The crucial support at the 200-DMA, positioned around 44650, is expected to attract buying interest. However, sustained weakness may persist if it remains below the 200-DMA. On the positive side, 45500 presents an immediate hurdle, while 46500 acts as a key resistance in any potential pullback rally,” he said.
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