The stock market is expected to open with little change on Friday, as it takes cues from mixed performances in global markets. Asian stocks began cautiously after the release of US inflation numbers, while US stocks closed flat overnight. Geopolitical tensions in the Red Sea, following strikes in Yemen by the US, may contribute to the cautious sentiment among traders.
In the domestic market, traders will be closely monitoring the Q3 earnings reports of HCL Technologies and Wipro, and reacting to the results of TCS and Infosys. These reports will provide valuable insights into the performance of these companies and their potential impact on the market.
Nifty Outlook:
Technical research analyst Jatin Gedia from Sharekhan pointed out that the intraday dip in the Nifty halted at the 21,650-21,630 zone, supported by key hourly moving averages. However, until the range of 21,720-21,750 is breached on the upside, the market is expected to continue its range-bound consolidation. On the downside, 21,550-21,520 is identified as the crucial support zone.
Nifty Bank Outlook:
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, highlighted the struggle between the bulls and bears in the Nifty Bank, leading to a volatile trading session. The index faces a significant hurdle at 48,000, marked by substantial call writing. A decisive breakthrough above this level could trigger a sharp short-covering rally. On the downside, the lower-end support remains intact at 46,900, but a close below this level could intensify selling pressure.
GIFT Nifty Signals:
Nifty futures on the NSE International Exchange traded slightly higher, indicating a flat start for the domestic market.
Asian Shares:
Asian shares opened with caution due to escalating conflict in the Red Sea region, which sent oil prices surging. However, slightly higher-than-expected US inflation data did not affect investors’ views on early and aggressive rate cuts in the US and Europe. The MSCI’s broadest index of Asia-Pacific shares outside Japan was up slightly, with mixed performances in individual markets.
Oil Prices:
Oil prices saw a jump after the United States and Britain initiated strikes against targets associated with Houthis in Yemen. This response came after the Iran-backed group attacked international ships in the Red Sea.
Dollar Stability:
The dollar held steady against peer currencies as investors weighed higher-than-expected US consumer price inflation against expectations of interest rate cuts by the Federal Reserve. The dollar index remained relatively consistent, while other major currencies such as the euro and sterling also maintained their positions.
Wall Street Shares:
US stocks closed with little change as news of hotter-than-expected inflation and signs of labor market strength dampened hopes for early interest rate cuts by the Federal Reserve. However, a fall in Treasury yields prevented more significant declines.
Q3 Earnings Release:
Several companies, including HCL Technologies, Wipro, and HDFC Life Insurance Company, are set to release their Q3 earnings reports today. These releases will provide valuable insights into the performance of these companies and could impact their respective stock prices.
F&O Segment Ban:
Thirteen stocks, including Bharat Heavy Electricals (BHEL), Delta Corp, and Polycab India, have been put under the F&O segment ban by the National Stock Exchange (NSE) today. This ban applies to companies where derivative contracts exceed 95% of the market-wide position limit.
FPIs and Rupee:
Provisional data suggests that Foreign Portfolio Investors (FPIs) turned net sellers of domestic stocks, while domestic institutional investors (DIIs) became net buyers. The Indian rupee appreciated against the US dollar, supported by positive domestic equities and the performance of Asian currencies.
Source: Adapted from original article by PTI, Reuters, and other agencies