Domestic markets are expected to open in a narrow range with a downward bias. Gift NIfty at 21782 as against Nifty’s futures close of 21,785.95 indicates a soft opening for Nifty.

According to analysts, bulls now lack strength as the market already discounts all the positives. According to analysts, corporate results and global trends will keep the market active, and with mid-and small-cap stocks turning expensive on the valuation front, the focus will shift to large-cap stocks.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said: “As valuations are getting expensive, investors are taking exposure to select frontline stocks with focus shifting to corporate earnings season.”

Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said: The market will react to the domestic and global macroeconomic data, global bond yield, crude oil inventories, movement of the dollar index, and FII and DII investment activities.

However, experts said the underlying tone remains strong, thanks to India’s robust economic activity.

On GDP numbers, Aditi Nayar, Chief Economist, Head - Research and Outreach, ICRA Ltd.. “The Advance Estimates released by the NSO peg GDP growth in FY2024 at 7.3%, much higher than our estimate of 6.5%. The NSO expects the GDP growth to moderate to 7.0% in H2 FY2024 from 7.7% in H1 FY2024. Surprisingly, the estimated GVA growth of 6.9% for FY2024 implies that growth in this metric has been assumed at 6.2% in H2, significantly lower than the imputed GDP number for this period.

“In our view, the growth assumed for H2 FY2024 is quite high, given the tepid outlook for agriculture amidst the weak kharif output and ongoing lag in rabi sowing, as well as the feared temporary slowdown in capex ahead of the General Elections. In fact, the GoI’s capex declined by 8.8% YoY during October-November 2023 after rising by 43.1% in H1 FY2024,” she added.

Shrey Jain, Founder and CEO SAS Online - India’s Deep Discount Broker Looking ahead, it is anticipated that the Nifty will trade within the range of 21,500 to 21,850 in the upcoming trading sessions. As for the bank Nifty, a short-term perspective suggests an upside target of 49,500.

Despite the index reflecting a lack of enthusiasm due to neutral domestic sentiments, there is a discernible shift in the mood toward individual stocks as the market approaches the results season.

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