Indian benchmark indices, Sensex and Nifty, are expected to open on a flattish-to-weak note on Thursday due to continued FPI selling and muted global cues. Analysts believe that there is no immediate respite from the selling pressure, and the upcoming Budget proposals are now in focus as the market looks for a trigger to regain strength.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, highlighted several key areas of focus for the market. He mentioned that potential policy changes under President Trump could impact Indian exporters, and banking stocks will be closely watched following HDFC Bank’s strong earnings. Additionally, the FMCG sector could see movement after HUL’s Q3 results. Khemka expects the market to trade within a wide range in the near term, driven by global cues and quarterly company performance.
Technically, the Nifty has found support around 22,980 levels, according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates. Yedve stated that a short-term pullback towards 23,300-23,550 is possible if the index defends 22,980. However, he cautioned that sustaining below 22,980 could lead to weakness towards 22,850-22,800 levels. Yedve recommended adopting a “sell on rise” strategy in the Nifty given the current market conditions.
With approximately seven trading sessions left before the Union Budget, individual themes may come into focus, offering potential outperforming opportunities, noted Rajesh Bhosale, Technical Analyst at Angel One Ltd. He advised traders to stay alert and focus on specific sectors or stocks for near-term gains.
Global stocks are providing mixed trends, suggesting a lacklustre trading day ahead. Overall, the market is expected to remain under pressure until a significant trigger, such as the Budget proposals, provides direction and momentum for a sustained recovery.
