Nifty likely to open positive, indicates SGX Nifty

KS Badri Narayanan Chennai | Updated on November 22, 2021

Volatility to rise due to impending F&O expiry

Contrary to expectations that Indian stock markets will plunge due to the withdrawal of farm laws, domestic benchmark indices are likely to open on a steady note. SGX Nifty at 17,849 indicates that Nifty is likely to open moderately positive, as Nifty futures on Thursday closed at 17,790. However, global cues are negative as most Asian stocks are ruling in the red. Last Friday, US stocks too ended negative.

Analysts expect the market to remain volatile due to F&O settlement week on the NSE.

Santosh Meena, Swastika Investmart, said: “Indian market is showing signs of weakness after a long consolidation and there is a risk that weakness may get an extension ahead of the November month F&O expiry. Indian markets have underperformed since the beginning of the November series as we are seeing a mean reversion after a long period of outperformance in 2021”.

FPIs pump in Rs 19,712 crore in Indian markets in November so far

Focus is also on foreign portfolio investors, who have remained sellers in the secondary market.

Indices expected to move sideways

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: “Last week did end on high spirits but the broader sentiment continues to be directionless as retail investors and FIIs turned prudent over better asset class opportunities other than equities in India and globally. This cautiousness is not new to D-Street and markets have been more or less tepid since the beginning of November.”

“Given that most of the quarterly results and the festive mood are behind us, indices are expected to move sideways. As markets across the world are trying to decode the implications of rising inflation, any intensive selling by FIIs may take Indian indices lower, unless the domestic players provide support,” Chouhan said.

What do global macros foretell for markets?

Indian markets will react to the news of the withdrawal of the farm laws Bills. “I think this should not have much impact on the market because these Bills were not implemented yet. However the texture of the market is weak where the market reads more negative cues than positive cues,” Meena said.

Published on November 22, 2021

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