Market awaits positive cues to arrest slide, says analysts
Domestic markets are expected to open weak, as US treasury yield yields jumped above the psychologically 3 per cent level. In the surcharged atmosphere, unabating crude oil prices adding further fuel to the fire.
According to analysts lack of positive news kept market under bear control. According to them, most negative news such as rising interest rate, geo-political tension, surging inflation due to firm crude oil prices and general economic slowdown have already priced in. But there is no positive news emanating from anywhere to arrest the trend, they added.
FPIs on sell mode
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said FIIs at the moment are obsessed with the negativity surrounding Dalal Street in the backdrop of inflation concerns amidst spiking WTI oil prices at $120.97 a barrel. Also, bad news was that the Indian rupee hit a fresh low against the US Dollar despite Tuesday’s RBI intervention in the foreign exchange market.
The derivatives data also indicates cautiousness as FII’s again have more short positions outstanding in the index futures segment, said Ruchit Jain, Lead Research, 5paisa.com.
SGX Nifty down 80 points
SGX NIfty at 16,290 indicates, signals a gap down opening of another 80 points for Nifty, as Nifty futures on Wednesday closed at 16,365. In early deal on Thursday, Asia-Pacific stocks are mixed as Japan, Korea and Chinese stocks are little changed while Australian equities lose over one per cent. Overnight, the US stocks slumped about one per cent.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said after the announcement of RBI’s mid quarter policy around 10 am on Wednesday, the market showed swift intraday upside recovery, but that intraday momentum has failed to sustain the highs. “The positive chart pattern like higher tops and bottoms is intact as per daily chart and current weakness could be a part of new higher bottom formation. Still there is no confirmation of any higher bottom reversal in the market,” he added.
According to him, the current choppy movement could extend for another one or two sessions and the lows to be watched around 16,200 levels. Strong overhead resistance is placed at 16,450-16,500 levels.