The stock markets were closed on Thursday due to Shri Ram Navami holiday.
Rupak De, Senior Technical Analyst at LKP Securities said Nifty witnessed another day of meaningful recovery as the Middle East conflict eased. On the higher end, it found initial resistance at the previous congestion zone. The RSI on the daily chart is in a bullish crossover with a positive divergence, he said.
“In the short term, the trend may remain positive as long as it stays above 23,000, where immediate crucial support is placed. On the higher end, a decisive move above 23,500 may trigger the next leg of the rally, which could extend towards 24,000/24,500. However, failure to reclaim 23,500 might attract the bears again in the market,” De added.
Here’s breaking down of the pre-market actions:
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 170 points, or 0.73 per cent, at 23,108, signaling that Dalal Street was headed for a negative start on Friday.
- Tech View: Decoding the technical charts to spot the current trends, Bajaj Broking said the index formed a bullish candle with a higher high and a higher low signaling extension of the pullback for the second session in a row after recent sharp decline. Volatility is expected to remain elevated in the near term due to uncertain global cues, firm crude oil prices, and ongoing geopolitical tensions, the brokerage said.
- India VIX: India VIX, which is a measure of the fear in the markets, fell mildly by 0.40% to settle at 24.64 over the last closing.
US stocks end lower
The Nasdaq tumbled more than 2% to confirm a correction on Thursday while the S&P 500 and the Dow fell more than 1%. Investors scrambled for safety on fears of escalation in the U.S.-Israeli war against Iran, which has sent oil prices soaring and exacerbated inflation concerns.
- Dow down 1.01%,
- S&P 500 dips 1.74%,
- Nasdaq falls 2.38%
Asian stocks slip
A selloff on Wall Street extended to Asia as traders stayed cautious even after President Donald Trump again delayed his deadline for Iran to reach a deal. Crude oil slipped.
- S&P 500 futures rose 0.1% as of 9:45 a.m. Tokyo time
- Hang Seng futures were little changed
- Japan’s Topix fell 1.1%
- Australia’s S&P/ASX 200 fell 0.8%
- Euro Stoxx 50 futures were little changed
Oil falls
Oil prices fell in early trade on Friday and were down over a volatile week after U.S. President Donald Trump said talks with Iran to end the war were going “very well” and announced he would pause attacks on the country’s energy plants for 10 days.
Dollar gains
The dollar pushed higher toward multi-month peaks on Friday as investors sought safety in the shadow of an intensifying Middle East war and mounting doubts over any path to de-escalation.
FII/DII action
Foreign institutional investors (FIIs) were net sellers of Indian equities as they sold shares worth Rs 1,805.37 crore on Wednesday while the domestic institutional investors (DIIs) shares purchased shares worth Rs 5,429.78 crore.
Stocks in Ban
Steel Authority of India (SAIL) is under F&O trade ban today while Sammaan Capital has come out of it.
Rupee: The Indian rupee weakened slightly on Wednesday but held off pressure from dollar demand linked to maturing non-deliverable forwards and foreign portfolio outflows, as the central bank intervened to support the currency. The rupee hovered near its record low of 93.98 per dollar through the session before closing at 93.9775, down 0.1%.
“The range for tomorrow is expected between 93.25 to 94.25. Rupee is undervalued by almost 6% on REER basis as per the latest RBI Bulletin of March-26,” Bhansali said.
(Inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)