Domestic equity market benchmarks BSE Sensex and Nifty 50 were likely to open subdued on Friday. Factors such as the US Fed policy concerns over economic recovery, rising border tensions between India-China and weak global cues pushed markets down in the previous session, ending the two-day gaining streak. The investors’ wealth was eroded by over Rs 1 lakh crore. In today’s session, investors will keep tabs on the newsflow related to the COVID vaccine, UK vote on Brexit and developments around the India-China border issue. “If the weakness persists in the market, one should take advantage of it and add quality stocks in their portfolio as the overall long term market trend remains positive,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
SGX Nifty swings into green: Trends on SGX Nifty suggested a tepid start for the Sensex and Nifty on Friday. Nifty Futures were trading 9.50 points or 0.08 per cent up at 11,536.50 on Singaporean Exchange.
BOE eyes negative interest rates: The Bank of England said it was looking more closely at how it might cut interest rates below zero as Britain’s economy faces a triple whammy of rising COVID-19 cases, higher unemployment and a possible new Brexit shock, according to a Reuters report.
FII and DII data: On Thursday, foreign institutional investors (FIIs) offloaded shares worth Rs 249.82 crore, while domestic institutional investors (DIIs) sold shares worth Rs 1,067.83 crore on a net basis, according to the provisional data available on the NSE.
Global markets: Asian markets were trading mostly higher in early trade on Friday. Japan’s Nikkei was marginally up while the Topix index gained 0.24 per cent. South Korea’s Kospi rose 0.1 per cent. In overnight trade on Wall Street, US stocks fell. The Dow Jones Industrial Average fell 0.47 per cent, the S&P 500 lost 0.84 per cent and the Nasdaq Composite dropped 1.27 per cent.
Technical take: “The short term trend of Nifty seems to have turned into profit booking mode. Unless immediate resistance of 11600 is not broken on the upside we could see broader range movement of ups and downs in the market. Initial support is placed at 11430-11400 levels and a move below this area could drag Nifty down to lower 11200-11180 levels in the near term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
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