Indian equity indices, Sensex and Nifty 50 are poised for a higher opening on Friday, tracking gains in global markets and a strong index from Gift Nifty. The latter, which is trading at 23,450.50, shows a premium of 90 points over the previous close, indicating optimism on Dalal Street.
On Thursday, the domestic market faced a sharp selloff, with the Sensex down 422.59 points (0.54 per cent) to close at 77,155.79, while the Nifty 50 fell 168.60 points (0.72 per cent) to settle at -23,349.90. Analysts noted that Nifty’s breach of 200-day EMA at 23,500 could extend the decline to 23,200–23,100 levels.
Technical View
Nify has formed a bearish pattern on the daily chart, suggesting a continuation of bearish momentum. Sharekhan’s Jatin Gedia said, “The index is facing resistance at 23,500, with support close to 23,180.” Nagaraj Shetti of HDFC Securities emphasized the importance of near-term action, saying, “Failure to show sharp weakness in subsequent sessions could result in a bounce.”
Global Cues and F&O Ban List
Wall Street closed higher on Thursday, driven by gains led by Salesforce, while Asian markets expressed a positive outlook early on Friday. Meanwhile, eight stocks, including Adani Enterprises, ABFRL, and GNFC, remain under the F&O ban due to position restrictions.
Rupee and FII/DII data
The rupee ended at a record low of 84.50 against the US dollar, weighed down by higher crude oil prices and equity outflows. FIIs sold shares worth Rs 5,321 crore on Thursday, while DIIs pared some losses by buying equities worth Rs 4,200 crore.
Outlook for the Day
The focus will be on the release of PMI data from the US, Europe, and India, as well as country developments. As the Gift Nifty suggests a rebound, the indices may see a temporary recovery, but the volatility may continue.
