Markets are set for a cautious start on Thursday, with the GIFT Nifty trading 27 points lower at 24,518.50, reflecting a muted opening for domestic equities. Weakness in global markets and rising crude oil prices are expected to impact investor sentiment.
Key levels to watch:
Nifty is facing immediate support at 24,350, while resistance is likely to be around 24,700. A decisive move beyond this range can define a short-term market trend. A drop below 24,350 would dampen sentiment, while a break above 24,700 would signal rising momentum.
Global markets:
US stocks rallied overnight, with the Dow Jones up 0.7 percent, the S&P 500 gaining 0.6 percent, and the Nasdaq advancing 1.3 percent. Positive results from big tech companies like Salesforce and reassuring comments from Federal Reserve Chairman Jerome Powell boosted investor optimism. In Asia, Japan’s Topix rose 0.5 percent, while Australia’s ASX 200 rose 0.2 percent. However, Hang Seng futures were down 0.8 percent.
F&O Restrictions:
Stocks on the F&O ban list today include RBL Bank, Granules, and Manappuram. These securities exceeded 95 percent of their market-wide limits.
Crude oil and the rupee:
Oil prices advanced as markets awaited the outcome of the OPEC+ meeting, with tensions in the Middle East adding to volatility. The rupee, on the other hand, weakened to a record low of 84.76 against the US dollar, weighed down by higher crude prices and a stronger dollar.
FII/DII Data:
On Wednesday, foreign institutional investors responded to the buyers, pouring Rs 1,797 crore into equities. Domestic institutional investors, however, sold shares worth Rs 90 crore.
Market outlook:
Despite a volatile trading session on Wednesday, analysts expect more consolidation soon. Ajit Mishra, SVP at Religare Broking, suggested focusing on quality stocks and adopting a stock-specific strategy during this mid-term layoff.
Investors should remain vigilant, monitoring global indicators and domestic developments as markets navigate uncertain territory.
