Domestic markets are expected to sustain gains on Friday even as all eyes are on the outcome of RBI policy meet outcome, a statement on which is expected at 10 am. Gift Nifty at 24,800, indicates a slight to positive opening for market, as Nifty futures closed at 24,765.
Gaurav Garg, Research Analyst at Lemonn Market Desk, said: “The market is expecting a rate cut, driving momentum in PSU banks, private banks, and financial services in recent days amid speculation. However, any deviation from these expectations could potentially disrupt sector’s momentum. The RBI, on the other hand, may choose to delay rate cuts to ensure inflation aligns more comfortably with its target levels, prioritising economic stability over immediate market sentiments.”
The return of FPIs as buyers boosted sentiment further. FPIs, after remaining sellers in October and November, were net buyers during the first four days of trading in December.
According to analysts, the market may turn volatile in the initial hours due to RBI meet outcome but buying by FPIs will ensure the sustenance of uptrend.
According to Osho Krishnan, Senior Analyst, Technical & Derivatives, Angel One,market breadth has clearly shifted to a bullish trend, indicating an overall positive sentiment among investors. “However, it is prudent to keep positions light as we approach a significant resistance level that could potentially hinder further price gains. At present, thematic movers are currently in the spotlight. Therefore, one should concentrate on these thematic movers, as they are more likely to present worthwhile opportunities in the short term.,” he added.
According to analysts, the mid and small-cap sectors have also contributed to recent market movements, and it will be intriguing to observe further developments in these areas. So, it is time to remain cautiously optimistic about these movements, they said.