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Gift Nifty indicates a positive start for domestic market

The new week is likely to begin on positive note for domestic markets, despite global uncertainty. Analysts said the on-going result season will keep interest among individual stocks while the broader trend would be dictated by global sentiment. The upcoming monthly expiry of F&O contracts on the NSE this Thursday will increase volatility, they added.

Gifty Nfity is ruling at 22,240 against Nifty May futures Friday’s close of 22,128.70 and May futures close of 22,275.

Analysts also said focus will be on the activity of foreign portfolio investors. They were largely sellers in April.

Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said: the hotter-than-expected US inflation and the consequent spike in bond yield (the 10-year rising above 4.6 per cent) led to big selling by foreign portfolio investors in the Indian cash market. FPIs sold equity worth ₹16,452 crore through exchange. This kind of big selling happens whenever the US bond yields spike beyond expectations, he added.

Coming to portfolio changes by the FPIs, this month FPIs have been big sellers in IT in anticipation of poor Q4 results. They were also sellers in FMCG and consumer durables. FPIs were buyers in autos, capital goods, telecom, financial services and power,” hel added.

According to Pravesh Gour, Senior Technical Analyst, Swastika Investmart, this week promises to be crucial for the market as ongoing worries about a potential conflict between Iran and Israel emerge. “If tensions escalate significantly, there’s a risk of panic selling and increased volatility across global stock markets. Moreover, the market will be keeping a close eye on the fluctuations in crude oil prices, as geopolitical events frequently impact them,” he added.

Investors will also be watching for important earnings reports of Tech Mahindra, Bajaj Finance, Nestle, Baja FInserv, HCL Technologies and Maruti Suzuki, he said.

Meanwhile, global stocks in the Asia-Pacific are largely positive except Chinese markets

“On the macroeconomic front, China will announce Loan loan prime rate for 1 year and 5 years on April 22, 2024. The Bank of Japan will announce its interest rate decision on April 26, 2024. The US Unemployment Claims will be announced on April 25, 2024, and movements in US bond yields and the dollar index will be important factors influencing market sentiment,” he added.

On the derivatives front, the long exposure of FIIs in index futures stands at 35 per cent, whereas the put-call ratio is sitting at the 1.03 mark, suggesting a bullish bias.

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