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Domestic markets are likely move in a range on Thursday. However, analysts expect that stock-specific will continue. “Lack of triggers with slowdown in institutions activity, we expect the market to move in a narrow range,” said analysts.
SGX Nifty at 18,410.50 indicates a muted opening for Nifty, as Nifty futures on Wednesday closed at 18,451.85.
Most Asian stocks are down with Hang Seng sliding over 2 per cent. Markets in Japan, Taiwan and Korea are down between 0.5 per cent and 1 per cent. However, Australian stocks are up marginally.
Overnight, the US stocks are down as a US Fed member reiterated the central bank’s tough stance.
Fed’s stance
US stocks declined after a disappointing round of earnings and hawkishness stance expressed by the Fed’s Daly and Williams who noted that 4.75% to 5.25% is a reasonable range for the Fed to raise interest rates, which is a little higher than what money markets are pricing in, said Edward Moya, Senior Market Analyst, The Americas OANDA.
However, analysts expect Indian market to remain firm on the back domestic strength.
Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services Ltd, said: “Despite volatility, the underlining strength in the market is clearly visible with Sensex touching new lifetime high and Nifty holding above 18400 zone. Globally, the ongoing G-20 meeting has raised hopes of some positive development to reduce geo-political tensions.”
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: “The lacklustre trend was visible across the Asian and European markets, which prompted local traders to trade cautiously. After last week’s spectacular rally, investors are in no hurry to lap up stocks despite some tailwinds in the domestic economy.”
The current market texture is non directional and fresh uptrend is possible only after the 18450 breakout level taking the index to 18550-18600. On the flip side, dismissal of 18350 could accelerate the selling pressure, which could see the index retest the level of 18250-18200, he added.
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