Gift Nifty at 19,790 indicates a flat opening for domestic benchmarks Sensex and Nifty on Friday. However, analysts expect higher activity outside the benchmarks, with mid-cap and small-cap indices scaling new peaks. Sector-specific action is likely to continue said analysts.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said:Niche sectors like shipping and defence stocks continue to see buying interest on the back of large order wins and a strong order book. The rally in paper and sugar stocks continues. The Nifty has shown good momentum in September so far and is inching closer towards its life highs, where it could face some resistance. However, we expect the outperformance in the broader market to continue, with interest in niche sectors.

However, most global stocks remain in the negative. Japanese stocks have tumbled nearly one per cent on weak economic data. Other equities in the Asia-Pacific region are down around 0.5 per cent.

Also read: Stocks that will see action today—September 8, 2023

Analysts expect the domestic markets to witness selling pressure.

“We suspect the fear of missing out (FOMO) can rule traders’ mindset, as bargain hunting and value buying could be the probable theme,” said Prashanth Tapse of Mehta Equities.

The volatility index, INDIA VIX, exhibited a positive trend, rising by 1.83 per cent intraday, and settling at 10.8725, still in a comfort zone for bulls.

According to Choice International, Open Interest (OI) on the call side was observed at 19,750, followed by 19,650 strike prices, indicating potential resistance levels. 

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