Domestic markets are expected to open flat on Friday amid mixed global cues. US stocks closed in the green and most equities across Asia-Pacific region are also up except Japanese markets.

However, GIFT Nifty at 19550 indicates a positive-to-flattish opening for benchmarks, as Nifty futures on the NSE on Thursday closed at 19474.80.

Analysts expect profit taking at higher levels and stock-specific action due to results season. Thanks to uninterrupted buying by foreign portfolio investors (FPIs), analysts expect market to remain in consolidation phase.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said, “With the start of Q1FY23 earnings season, market is likely to witness more stock specific action. Over the near-term, market may remain in consolidation mode though the undertone remains positive on the back of strong FII inflows, robust domestic macro-micro factors and expectation of normal monsoon.”

Shobhit Mathur, Senior Director, Kotak Cherry, said, “The result season for the first quarter of the new financial year has kicked in on a positive note. The street expects the earnings in Nifty companies to increase by close to 25% on y-o-y with banks being the biggest contributor, followed by pharma majors. Bulls in the IT sector (after TCS results) have pulled the Nifty 50 index to an all time high. Strong FII flows and the fundamental strengths of the economy along with a China Substitution strategy are at the root of the market move we have been witnessing for the last 30 odd days. Foreign Investors have invested a total of $17 billion so far in the current financial year.”

‘Sensex to hit 70,000’

Some analysts are bullish given the strong domestic economic indicators and FPI inflows.

Vaibhav Kaushik, Research Analyst at GCL Broking, said, “We are very sure that Sensex can hit the 70000 mark very soon and even it can go beyond it. Our target is 75000 for this calendar year.” All important components of Sensex are trading above average on weekly charts. IT stocks are out performing now. It will help for faster movement of Sensex in coming weeks.”

According to Sooraj Singh Gurjar, founder and MD of Get Together Finance, Sensex has shown good growth over the past few months and infrastructure and the PSU sector played a huge role in this growth.

“Sustaining this growth momentum in both sectors could potentially propel the Sensex to reach the remarkable milestone of 70,000.” 

Experts also not ruled out profit taking in the short-term, given the sharp rally in quick time.

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