SGX Nifty above 16,700 points to a gap-up opening
Benchmark indices are likely to maintain the bullish momentum after closing higher on Thursday tracking strong global cues. At 16750, SGX Nifty is up over 140 points over Thursday’s Nifty Futures close indicating a strong start for the markets.
Wall Street edged higher at the end of a choppy session on Thursday with the tech heavy Nasdaq rallying nearly 3 per cent. Asian markets were largely positive in the morning session. Investors continue to remain concerned about inflation and rising oil prices. Volatility is expected in the near-term.
Oil prices were little changed after OPEC+, on Thursday, decided to boost output, adding 6,48,000 barrels per day to the market next month.
Separately, the US Federal Reserve Vice Chair Lael Brainard has said there is very little possibility of a pause in rate hikes and at least a couple of more 0.5 percentage-point hikes are likely till inflation cools off.
According to Ajit Mishra, VP-Research, Religare Broking Ltd, “While the global markets are still pointing towards mixed signals, selective buying in index majors across sectors is helping the index to inch higher. A decisive break above 16,700 in Nifty would fuel fresh momentum towards 16,900.”
According to Deepak Jasani, Head of Retail Research, HDFC Securities, “Nifty has expectedly started to rise post a small correction. 16696 is the next resistance post which 16888 could halt the up move temporarily. A move below 16506 could result in some minor weakness.”
Foreign investors remain net sellers
Foreign investors continued to remain net sellers while domestic investors were net buyers. According to NSE provisional data, FIIs net sold shares worth ₹451.82 crore on Thursday, while DIIs net purchased shares worth ₹130.63 crore.