Indian benchmark indices are set for a sharp decline during the trading session on Friday following a muted set of numbers from Indian IT companies like TCS and Tata Elxsi, kicking-off the result season on a weak note. Global cues remained mixed amid Trump tariff threats. Commodities turned marginally firm.
Nifty futures on the NSE International Exchange traded 138.90 points, or 0.55 per cent, lower at 25,283, hinting at a weak start for the domestic market on Friday. Asian markets were mostly down in the early trade. Nikkei dropped 0.10 per cent, while ASX 200 and DJ were down up to 0.90 per cent. However, Hang Seng was up 1.50 per cent in the early trade.
Investors are closely watching key global economic data from the US and the UK GDP data scheduled on Friday, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. “The market is likely to consolidate in the near term, tracking progress on India–US trade talks, while cues from the earnings season may drive sector and stock-specific movements,” he said.
Wall Street stock gained modestly to post record closing highs on Thursday. The Dow Jones Industrial Average rose 192.34 points, or 0.43 per cent, to 44,650.64, the S&P 500 added 17.20 points, or 0.27 per cent, to 6,280.46 and the Nasdaq Composite inched up 19.33 points, or 0.09 per cent, to 20,630.67.
The US dollar rose on Friday on more signs of upheaval in the global trade landscape, as US President Donald Trump announced more tariffs and said he planned to impose blanket levies of 15-20 per cent on most trade partners. The greenback was last up 0.2 per cent at 97.77 and set to end the week with a 0.8 per cent gain.
In commodities, Oil prices rose slightly after losing 2 per cent overnight. Brent crude futures inched up 0.2 per cent to $68.77 a barrel, having lost 2.2 per cent a day earlier. US West Texas Intermediate crude was at $66.76 a barrel, up 0.3 per cent. Spot gold rose 0.3 per cent to $3,333 an ounce.
Markets will react to TCS’s earnings in early trade, with a keen eye on management commentary, which could set the initial tone, said Ajit Mishra, SVP of Research at Religare Broking. “That said, with the earnings season underway, stock-specific opportunities are likely to emerge on both sides, so participants should align their positions accordingly,” he added.
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 221.06 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 591.33 crore on a net-net basis.
Nifty & Sensex outlook
The intraday market outlook is weak; however, a fresh selloff is possible only after the dismissal of 25,300/83,000. Below these levels, the market could slip to 25,200/82,700, said Shrikant Chouhan, Head Equity Research, Kotak Securities. “Further selling pressure may continue, dragging it down to 25,225/82,500. On the upside, above 25,450/83,400, we could see a quick intraday rally toward 25,550–25,650/83,700–84,000.”
In the short term, the trend is likely to remain weak, which could lead to further downside. On the lower end, support is placed at 25,250–25,200, while on the higher end, resistance levels are seen at 25,400 and 25,500, said Rupak De, Senior Technical Analyst at LKP Securities.
Nifty Bank outlook
Nifty Bank is likely to extend the same and only a move above 57,600 will open further upside towards 58,200-58,500 levels in the coming weeks, said Bajaj Broking. “Key short-term term support is placed at 56,000–55,500 region, representing a confluence of the 50-day EMA and the key retracement level. The broader trend remains positive, and any dips should be bought in,” it said.
Nifty Bank formed a Bearish Engulfing candle on the daily chart, indicating weakness. Immediate support for Bank Nifty is seen near 56,700, where the 21-DEMA is placed, while resistance is observed around 57,365, said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates. “Hence, traders are advised to be careful on higher levels,” he said.
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