Domestic markets, especially Nifty, which is struggling due to two Adani stocks being part of it, are likely to open positive on Friday. Strong global cues to aid market recovery, said analysts. Some of the beaten down stocks will recover on global sentiment, they expect.

SGX Nifty at 17,704 indicates a positive opening for Nifty, as Nifty futures on Wednesday closed at 17,685.25. “The big events such as Budget and FOMC policy outcome have passed and the market thus finally seems to be settling down post the recent high volatility,” said Ruchit Jain, Lead Research, 5paisa.com.

Focus on Adani

According to analysts, some Adani group stocks are likely to bounce back amid reports of that the group honoured coupon payments due on Thursday in the US. Besides, reports that the company is planning to prepay share pledges to boost confidence may also turn sentiment positive.

Also read: More trouble ahead for Adani Group

Most Asian stocks are either neutral or in marginally down.

However, as the group and stock are under scrutiny from all corners - exchanges, regulators, rating agencies, index providers and others - the stock will be volatile, said experts.

Delink from Adani?

According to market experts, the market is slowly trying to delink from the Adani saga. One could expect a sharp rise in some of the mid and small-cap stocks sharply, they added.

The US stocks, especially Nasdaq was on fire by jumping over 3 per cent thanks to Meta Inc’s 23 per cent rise due to buyback announcement.

Edward Moya, Senior Analyst, The Americas, OANDA, said US stocks are rallying as the Fed has one or two more quarter-point rate rises left in this rate hiking cycle. “The post-Fed playbook was fairly straightforward as traders bought up risky assets after Fed Chair Powell’s dovish tone.”

“Financial markets believe inflation will decline more quickly than the Fed is currently thinking. ​ It is also clear that some traders think that risk appetite can remain if we have a short and shallow recession. With some traders expecting a half-point in rate cuts by the end of the year, investors are scrambling to get back in to growth stocks,” he added.

“Nifty traded within a range on the weekly expiry day and recovered from the intraday lows towards the end. Nifty is trading in a falling channel and prices are near the lower end of the channel. The momentum readings on the daily chart too are in an oversold zone hinting at possibility of a near term pullback if the supports remain intact,” Ruchit Jain added.

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