Bearish trend is likely to continue on Thursday as well for the domestic market. Analysts expect lacklustre trading on Thursday ahead of long weekend. Markets are closed for the holiday on Friday due to Gurunanak Jayanthi.
Analysts expect the market to remain under pressure until fresh positive triggers emerge. Signals from global markets too were negative. Overnight, the US stocks tumbled between 0.5 and 0.3 per cent. SGX NIfty at 17,875 signals, Nifty to open about 35 points lower. Nifty futures on Wednesday closed at 17,909.
Most Asian markets are ruling in the red. Equities across Japan, China, Hong Kong, Korea and the Philippines are down around 0.5-1.3 per cent in the early deal on Thursday. However, Taiwan and Australian markets eked out marginal gains.
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As foreign portfolio investors remained on sell mode and domestic institutions unwilling to commit in a big way, markets are unlikely to see recovery soon, said market experts.
Consolidation mode
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, “Overall market is in consolidation mode as valuations are rich despite good quarterly performance.”
Overall 2QFY22 earnings came in above our expectations, led by a) cyclical sectors (such as O&G and Metals), b) improved asset quality in the BFSI sector, and c) strong topline growth in the technology sector. The quarter brought to the fore two important trends: an improving demand environment and the impact of rising input costs on operating margins.
“Nifty traded in a small range of 100 points. It closed negative by 110 points at 17,890. Nifty is showing weakness and it’s important for it to trade above 17,800, if broken we may see 17,650 as the next support level. On the higher side Nifty has resistance in 18,100-18,200 range. Traders are suggested not to buy falling markets and wait for Nifty to close above 18,200 with higher-than-average volumes before taking new long positions,” said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.