The opening of domestic markets on Friday is expected to be cautious due to mixed global cues. The Nifty at 22,540 signals a gap-down opening of about 140-150 points, indicating a lack of triggers for investors and low participation levels.
The US President’s announcement of imposing tariffs on imports from the European Union, Canada, Mexico, and China has added to the global market uncertainty. This has led to a sharp decline in Asian stocks as fears of a tariff war escalate.
InCred Equities has adjusted its probabilities for the market outlook, citing short-term macro challenges. The firm has cut its target for the Nifty-50 and maintains a cautious stance on large-cap stocks.
Technical analysts suggest that Nifty is in a corrective decline phase and may consolidate between 22,400-23,000 levels. Bank Nifty, on the other hand, is expected to find support at 48,300-48,000 levels while resistance is seen at 49,500-49,600 levels.
Derivative analysts note that there is a decrease in market volatility, as indicated by the decline in India VIX. However, the overall sentiment remains bearish with call writers dominating put sellers in the derivatives market. The Put-Call Ratio has improved marginally, but sellers still control the market.
In conclusion, the market is expected to remain volatile and sensitive to global developments. Investors are advised to exercise caution and monitor key levels for potential trading opportunities.
