Stock markets are expected open on a flat to positive note Thursday despite positive global cues. Gift Nifty at 22,395 signals a flat opening, as Nifty May futures closed at 22,393 on Wednesday. For the fifth time in the history of NSE, Nifty on Wednesday closed dead flat at 22,302.50 (Zero point change).
Analysts expect the directionless trend to continue, with traders confused due to a fall in voting percentage in the ongoing general election.
Ashwin Ramani, Derivatives & Technical Analyst, and Om Mehra, Technical Analyst, SAMCO Securities, said Nifty showed some signs of bounce in the first half on Wednesday, before succumbing to selling pressure again in the second half, closing exactly at the previous day’s close of 22,303.
“The India VIX rose for the 10th consecutive day and closed at 17.08, up 0.43 per cent. The VIX rose initially today, making a high of 18.32 in the process; it cooled off later, which gave some solace to the bulls,” he added.
Meanwhile, Asian stocks are positive, thanks to gains in the US stocks overnight.
Vinod Nair, Head of Research, Geojit Financial Services, said: the Indian market echoed subdued investor sentiment on worries about declining voter turnout. “Despite domestic Q4 earnings largely meeting estimates, the earnings landscape appears to be moderating. Sector-specific action was visible in FMCG and auto stocks, aided by expectations of a revival in rural demand in H1FY25,” he added.
Post-market hours, big companies such as L&T, Tata Power, TVS Motor, Godrej Agrovet and Sula Vineyards reported Q4 results. These shares will react to the numbers.
On Thursday, companies such as State Bank of India, Punjab National Bank, Asian Paints, BPCL, HPCL, MGL, PNB, Quess Corp, Rain Industries, Relaxo Footwear will report numbers. The board of HPCL and BPCL will also consider a bonus issue.
“Strong put writing was observed at the 22,200 Strike in Nifty, while the 22,400 & 22,500 Strikes saw significant call writing. Call writers strengthened their positions at these strikes in Nifty. Unless and until put writers (Bulls) exit from the 22,200 Strike, Nifty is likely to trade sideways or remain rangebound. An upmove is likely only if call writers (Bears) exit from the key 22,500 Strike in the Index,” said Ashwin Ramani.
Shrikant Chouhan, Head Equity Research, Kotak Securities, said: for day traders now, the 50-day SMA (Simple Moving Average) or 22350/73550 would act as a key level to watch out for Nifty/ Bank Nifty.
“Above the same, the pullback formation is likely to continue till 22400-22425/73700-73800. On the flip side, below 22240/73300, the selling pressure is likely to accelerate. Below which the market could slip till 22150-22100/73000-72800,” he added.