4 hrs ago
Indian Stocks Seen Muted Amid Global Market Uncertainty
Indian stock markets may start Thursday almost unchanged.
This signal came from GIFT Nifty trading near 22,629.
On Wednesday, both the Sensex and Nifty ended lower after giving up early gains.
Investors sold shares after prices rose during the day.
Higher crude oil prices and selling by foreign investors are making traders cautious.
Analysts said the Nifty needs to stay above 22,600 to avoid a sharper fall.
They said the Sensex faces resistance around 72,700 to 73,000.
Overseas markets were mixed, with Japan and Taiwan rising while South Korea fell.
In the United States, the Dow and S&P 500 declined, while the Nasdaq edged higher.
GIFT Nifty indicated a nearly flat opening for Indian markets on Thursday, 1 October.
The Nifty 50 fell 0.42% to 22,620 on Wednesday, while the Sensex declined 0.07% to 72,480.
Analysts cited higher crude prices and continued foreign institutional selling as pressures on market sentiment.
Technical analysts identified 22,600 as crucial Nifty support and 72,000–72,200 as key Sensex support.
Asian markets were mixed, with Japan and Taiwan higher while South Korea opened lower.
- Who
- Indian stock-market investors, foreign institutional investors, and market analysts.
- What
- Indian equities were expected to open muted amid weak domestic momentum and mixed global cues.
- Where
- Indian markets, with signals from the United States and Asian markets.
- When
- Thursday, 1 October, following the final trading session of September on Wednesday.
- Why
- Higher crude prices, foreign investor selling, rising US long-term Treasury yields, and profit-booking weighed on sentiment.
Cautious Outlook
Recovery Potential
Near-term market direction
Cautious Outlook
Analysts expect subdued sentiment because crude prices are rising, foreign investors continue selling, and the Nifty remains below key levels.
Recovery Potential
The seven-week correction has reset valuations, while holding above 22,600 could allow the Nifty to stage a meaningful recovery.
Technical signals
Cautious Outlook
A break below 22,600 on the Nifty or 72,000 on the Sensex could extend the decline.
Recovery Potential
A sustained move above 22,600 for the Nifty or a breakout above 73,000 for the Sensex could improve sentiment.
Key facts
- GIFT Nifty
- Around 22,629, down nearly 30 points from the Nifty futures' previous close.
- Nifty 50 close
- 22,620, down 0.42% on Wednesday.
- Sensex close
- 72,480.29, down 48.78 points or 0.07%.
- Nifty support
- 22,600; a decisive break below it could trigger a sharper correction.
- Sensex levels
- 72,000–72,200 identified as downside support; 72,700–73,000 as immediate resistance.
- US market performance
- The Dow Jones Industrial Average fell about 450 points, the S&P 500 declined 0.25%, and the Nasdaq rose 0.2%.
- Asian market cues
- The Nikkei 225 rose 0.9%, Taiwan's TAIEX gained 0.22%, and South Korea's KOSPI opened down 0.34%.
Quotes
Siddhartha Khemka
Head of Research, Wealth Management, Motilal Oswal Financial Services
“Indian markets are expected to remain cautious in the near term, although downside appears relatively limited from current levels, with the seven-week correction having driven a meaningful valuation reset and brought valuations to more comfortable levels. Higher crude prices and continued selling by Foreign Institutional Investors are likely to keep market sentiment subdued”
livemint.com
“Nifty again faced resistance at higher levels and made a high around the 20EMA on the hourly chart, leading to a fall towards the end of the session. Going forward, 22,600 is likely to act as a crucial support. A decisive fall below 22,600 might trigger a sharper correction. On the other hand, if the index sustains above 22,600, it might witness a meaningful recovery”
livemint.com
Sources
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