Domestic markets are likely to open on flat note on Friday. Gift Nifty at 24,450 signals a positive start as Nifty futures on Thursday closed at 24,382.65. According to analysts, Tata Consultancy Services started the result season on fairly stable note. The decline in US inflation will also boost sentiment.
Deepak Jasani, Head of Retail Research at HDFC Securities, said: “the US stocks rose to new milestones on Wednesday, with the S&P 500 finishing above 5,600 for the first time and the Nasdaq Composite securing its 27th record close of 2024.
Helping to fuel some of the risk-on sentiment from investors was the sense that the Federal Reserve might be willing to cut interest rates multiple times through January to support the economy. Jerome Powell told Congress that the Fed doesn’t need inflation below 2% before cutting rates and that officials still have more work to do. He noted the labor market has cooled “pretty significantly.”
In Asia, investors will be looking at any impacts of the China Securities Regulatory Commission’s decision to tighten rules on short selling and high-frequency trades in a bid to crack down on improper arbitrage and maintain market stability. The China Securities Regulatory Commission (CSRC) said securities re-lending – in which brokers borrow shares for clients to short sell – would be suspended. In addition, margin requirements would be raised for short-sellers, he added.
Meanwhile, Asian stocks are ruling mixed, with Japan stocks slumping almost 2 per cent.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd said: “However, sector and stock-specific actions continue as we enter into Q1 results season and ahead of the union budget.”
Ajit Mishra – SVP, Research, Religare Broking Ltd, said: “We are seeing consolidation in the index on the expected lines and it is likely to continue on Friday as well. Traders should concentrate on sectors or themes demonstrating resilience and consider stocks with favourable risk-to-reward citing the overbought market scenario.”
Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities, said: The India VIX fell 3.03 per cent on Intraday basis and settled at 13.99. The long short ratio cracked to 80 per cent on July 10 from 84 per cent on July 9 as the FPIs liquidated long positions for the first time in ten trading sessions.
Mandar Bhojane, Research Analyst, Choice Broking, said regarding the Open Interest (OI) data, on the call side, the highest OI was observed at the 24,800 and 25,000 strike prices, while on the put side, the highest OI was at the 24,000 strike price.