Indian equity market benchmark NSE Nifty50 is expected to open on a flat note with negative bias on Friday. Gift Nifty is ruling at 19,800 against Nifty futures close of 19,829 on the NSE. Analysts expect profit taking to continue at higher levels. As the results season is almost over, he focus will be on other triggers. Market has almost discounted all the positives and negatives and await further trigger to take a clear direction, analysts said. Meanwhile, sector rotation and stock-specific action will continue in this consolidation phase, they added.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said, “We expect positive momentum to continue in the market with sectoral rotation given the healthy macro data and receding global concerns. On economic data points, investors will look for Europe inflation data.”
Trading in F&O market signalled caution, said analysts.
Nifty Futures Open Interest (OI) indicate buildup of fresh short positions in the segment, Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities, said. The call writers have an upper hand over 19,400 Strike in Nifty and the option activity at this strike will provide cues about Nifty’s future direction, he added.
Similarly for Bank Nifty, the maximum call open interest is placed at 43,500-strike, while the maximum put open interest is at 43,700-strike. The level of 43,500 is expected to act as a strong support, he said.
According to Choice International analyst Devan Mehata, the highest open interest was observed at 19900 followed by 20000 strike prices on the call side, while on the put side, the highest OI is at 19700 strike price. On the other hand, Bank Nifty has support at 43900-43700 while resistance is placed at 44500-44700 levels.
According to analysts, the return of foreign portfolio investors in the last couple of days is heartening and this will act as a big support for market. Though it’s earlier days as their net buying is miniscule, the downside will be limited if they continue with their buying activity, they added