The Indian stock market is expected to open cautiously on Friday, following weak global market trends. Asian markets experienced a decline, and the US market closed in negative territory following the release of weekly unemployment figures. Despite crossing the 40,000-mark during the day, the Dow Jones later retreated.
On Thursday, Indian market indices closed almost a percent higher, driven by late buying across sectors despite mixed global cues. The Sensex rose by 676.69 points (0.93%) to close at 73,663.72, while the Nifty 50 increased by 203.30 points (0.92%) to settle at 22,403.85.
The Nifty 50 chart showed a small bullish candle with a long lower shadow, a pattern often seen as a continuation of an uptrend. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the formation of long lower shadows in two of the last four sessions indicates strong buying on dips, suggesting potential further gains.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, attributed the rebound in domestic equities to positive global cues and short covering on Nifty’s weekly expiry. He anticipates a slow recovery in the markets. However, he also expressed concerns about persistent FII selling, India VIX remaining above 20 levels, and the potential volatility due to the ongoing general elections.
