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Domestic markets are likely to open positive on Friday, after falling continuously for three days. Global cues turned positive, as value buying emerged at lower levels. At 17,750 (around 7.50 am ), SGX Nifty indicates that the market is likely to open marginally positive as Nifty futures on the NSE closed at 17,730.
Overnight, the US stocks made a strong recovery to close flat but in the positive territory. However, equities across Asia-Pacific region are mixed. While Taiwan and Australia stocks are up in early deal on Friday, Japan and Korean markets are down marginally.
The focus will be on RBI meeting outcome.
Status-quo from RBI?
Analysts expect the market to open calm in the first couple of hours, as the Reserve Bank of India will pronounce the MPC outcome after three days of deliberations. Though no one expect a rate hike, the focus will be on RBI commentary's about inflation, growth and economic projections.
All eyes are now on the MPC meeting outcome which may decide the next leg of the move, said Mohit Nigam, Head - PMS, Hem Securities.
Analysts also said the US Federal Reserve actions will be major factor in the next few weeks.
Fed to direct market movement
Jeffrey Halley, Senior Market Analyst, Asia Pacific, OANDA, said the FOMC minutes signalled a faster pace of balance sheet runoff then on previous occasions, targeting $95 billion per month from September, easing into the process from next month. "The minutes also suggested that some 50 bps Fed Funds hikes were on the cards and expect that to happen from next month. Only the Ukrainian war stayed the FOMC’s hand this month it seems," he added.
Time to buy?
Deepak Jasani, Head of Retail Research, HDFC Securities, said: “Currently, the markets are led by non-institutional players who have begun to aggressively take profits in the face of balance sheet reduction by the US Fed and ahead of the RBI policy meet.“
“Nifty should now take support from 17442-17519 band. Friday’s RBI MPC meet may not bring in any positive surprise and hence there seems to be little build-up ahead of it,” he added.
Rahul Sharma, co-founder of Equity 99, said: "We expect some correction in market bound by results of Q4. Investors are advised to use any fall to add fundamental stocks in their portfolio, as the market looks positive in coming days."
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