Market to open on positive note

Domestic markets are expected to open on flat-to-positive note on Wednesday, amid positive global cues. According to analysts, the see-saw battle will continue till a clear trigger emerges. According to them, most positive and adverse news has already been discounted.

SGX Nifty at 18,017 indicates a positive opening, as Nifty futures on Tuesday closed at 17,986.25 on the NSE. Tracking a positive close by the US markets overnight, most equities across the Asia-Pacific region are up about one per cent. Some markets such as Korea and New Zealand are flat, but ruling in green at present.

The FII’s data have turned neutral as they have covered some of their short positions as well, said Ruchit Jain, Lead Research, Traders are advised to trade with a stock-specific approach for now and look to take positional bets only post a breakout on either side, he added.

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Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services Ltd, said: Domestic equities have been witnessing wild swings in the last few days as a series of events have kept investors on edge. Some volatility was also led due to the cautious environment globally ahead of US Fed Chair Powell’s speech. “We expect Nifty to move in a broader range ahead of various events like US Fed speech, release of US, India and Europe CPI data. However, expectation of healthy earnings could cap the downside,” he added.

According to analysts, despite FPIs pulling out from Indian equities in the last few days, the continuous support by domestic investors, both retail and institutional, helped the market stay firm. According to them, markets are likely to remain on sideways and consolidate further before making an upmove.

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The key triggers could be Budget annoucements, as the expectation is low. If the Finance Minister surprises the market with positive announcements, that could trigger wild rally in equities, they added.

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