Domestic markets are expected to open moderately up on Friday despite the optimism prevailing all around. US stocks closed at record levels last night, thanks to President Donald Trump’s comments about tax cuts.

Gift Nifty at 23,300 signals a marginal gain of about 40 points for Nifty. Traders now shift focus to the upcoming Budget, and analysts say there is a chance of a pre-budget rally.

Rajesh Bhosale, Technical Analyst, Angel One Ltd - Angel One said:  While the benchmark index appears subdued, market action is expected to pick up soon, with only six trading sessions left before the pivotal Budget session. Meanwhile, broader markets have already taken centre stage, with individual stocks delivering impressive moves. “Notably, the Nifty Midcap Select index surged over 2 per cent, showcasing strength. Traders are advised to maintain a thematic focus on sectors and stocks likely to outperform in this pre-budget rally,” he added.

However, they said the trading pattern in F&O segment still gives a cautious signal.

Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities, said: In the derivatives space, uncertainty prevailed, with balanced participation in calls and puts suggesting indecision among traders. “Open interest at the 23,250-strike call soared to 2.21 crore contracts, marking this level as a formidable ceiling. Conversely, the 23,200-strike put witnessed a significant addition of 4.04 crore contracts, establishing a solid support level,” he said. The bustling activity between the 23,200 and 23,250 strikes highlights an ongoing tussle between bulls and bears, he said, adding that. The growing higher-level call positions underscore a challenging resistance to upward movement. The Put-Call Ratio (PCR) climbed to 1.05, reflecting a cautiously optimistic market sentiment.

India VIX, the volatility index, edged lower by 0.46% to 16.69, suggesting a slight easing of market jitters. Historically, VIX readings above 15 signal heightened market volatility, often indicative of bearish undertones, he cautioned.

Meanwhile, Asian stocks are up in early deals on Friday.

Published on January 24, 2025