Pre-market action: Here's the trade setup for today's session
On Friday, markets experienced a moment of reprieve as the Nifty index surged by 1.3%, buoyed by support from the IT sector. However, analysts anticipate that Indian stocks will tread carefully due to prevailing global economic uncertainties. Despite a decrease in the India VIX, suggesting lesser market anxiety, the actions of foreign and domestic investors were mixed. The rupee strengthened…
Pre-market action on Friday indicated some relief for markets, which had suffered two days of sharp declines. The Nifty rose 1.3%, buoyed by buying in IT stocks. Analysts noted that Indian equities were expected to remain cautious due to elevated global risks. The tech view for the coming days was grim, and the sentiment might persist for a few more days.
The Relative Strength Index (RSI) remained in a bearish crossover, staying in the oversold zone. Key support was identified at 22,180, with potential losses extending to 22,000 if broken. Resistance was positioned at 22,350. The India VIX, a gauge of market fear, declined 5.9% to 14.38. F&O (Futures and Options) trading was suspended for Bandhan Bank, Ambuja Cement, and LIC Housing Finance.
These stocks had crossed 95% of the market-wide position limit. Notably, Foreign Institutional Investors (FIIs) sold shares worth Rs 3,569 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 4,743 crore. The Indian rupee strengthened by 17 paise, closing at 96.71 against the US dollar. This gain was attributed to a slight softening in the US dollar and crude oil prices.
Podishetti Akash, the author of this piece, is not a SEBI-registered Research Analyst or Investment Adviser, and has no financial interest in the companies mentioned. The views and recommendations expressed are solely those of the respective SEBI-registered Research Analyst or brokerage firm, and should not be considered as the views or recommendations of The Economic Times Digital or the journalist.
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