Domestic markets are likely to see downward pressure at the open on Friday. Gift Nifty at 22,860 indicates a gap-down opening of about 80 points for Nifty. However, analysts expect the market to move in a narrow range, and action will continue in the larger markets as value buying emerges in some of the mid- and small-cap stocks.
With the lack of trigger, markets will see macroeconomic data for further direction, said experts.
Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said: On the macro front, the preliminary release of February-month manufacturing and services PMI of the US and India tomorrow will be the key data to watch out for. We expect Nifty to consolidate near its current levels without any fresh triggers, as it can be seen holding above 22,800-22,900 levels since the past seven trading sessions, supported by buying at lower levels.
Global stocks are mixed. Though US stocks ended in the red overnight, Japan, Hong Kong, and Taiwan equities were up marginally in the early deal even as Australian stocks edged down.
Meanwhile, derivative trading on the NSE presents a bearish undertone for domestic stocks.
Bulls Vs Bears fight
Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities, said: Derivatives data indicates a mildly bearish undertone, with call writers maintaining dominance over put sellers, signalling cautious optimism. A significant buildup in open interest at the 23,500-strike call (92.21 lakh contracts) confirms a strong ceiling for the index, while solid put writing at the 22,000 strike (87.94 lakh contracts) highlights firm support at lower levels.
The 23,000–23,500 zone remains under intense call writing and selling pressure, whereas consistent put additions between 22,900-22,700 indicate a fierce tug-of-war between bulls and bears. “The Put-Call Ratio (PCR) climbed to 0.81 from 0.70, indicating that sellers still hold an upper hand despite some bullish attempts. Meanwhile, the ‘Max Pain’ level at 23,000 suggests that while market swings persist, buyers may continue to absorb dips, reinforcing stability in the near term,” he cautioned.
However, India VIX, the market’s fear gauge, declined by 4.78% to 14.68, reflecting a slight moderation in risk perception. However, as long as VIX remains below the key 15-level, volatility is expected to stay in check, keeping sentiment cautious, he further said.
Open Interest (OI) data shows the highest OI on the call side at the 23,000 and 23,200 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 22,800 strike price, marking it as a key support level, said Hardik Matalia, Derivative Analyst, Choice Broking
Rewrite this news article and keep the same structure, information and length.
