Market is likely to open in the green amid positive global cues. The SGX Nifty at around 17,300 (7 am), a gain of over 70 points indicates a start in the green for the market.
On global equities, the US markets edged higher led by Meta Platforms which reported strong quarterly earnings. Asian markets were also trading in the green during the morning trade, tracking gains on Wall Street.
Technical outlook
According to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, a smart pullback rally on the last day of April F&O expiry series helped the markets rebound amidst wild intra-day gyrations during the week.
“Volatility is beginning to be the new normal for investors as rising inflation, possible interest rate hikes and fluctuating oil prices have kept equity as an asset class in tight leash. If the trend continues, investors may have to brace for more volatility in the new F&O series as well,” said Chouhan.
“The Nifty took support near 17070 and bounced back sharply thereafter. The index has re-claimed the level of the 200 day SMA and has also formed a long bullish candle on daily charts, which indicates the continuation of an uptrend formation in the near future. For the trend following traders, now the 200-day SMA or 17,200 would act as a trend decider level. And above the same, the Nifty could rally till 17,400-17,450. On the flip side, below 17,200, uptrend could be vulnerable and a strong possibility of quick intraday correction till 17,100-17,050 is not ruled out,” Chouhan added.
According to Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, Nifty bulls will aim to carry forward the positive baton to today’s trading session and “hopefully to next week’s trade with immediate goal post at 17,607 and then at psychological 18,000 mark. Technically speaking, the ongoing massive short covering shall continue as long as Nifty’s 17,807-17,000 support zone holds.”
FII turn net buyers
After 15 consecutive sessions of remaining net sellers, the Foreign institutional investors (FIIs) turned net buyers for the first time on Thursday, net purchasing shares worth ₹743.22 crore, while domestic institutional investors (DIIs) net purchased shares worth ₹780.94 crore, according to NSE provisional data.