Flat opening seen for Nifty, Sensex post Fed rate cut

Domestic markets are expected to open on a flat note despite the US Fed rate cut. The US Federal Reserve has reduced the interest rate by another 25 bps to 4.50-4.75 per cent, triggering a sharp rally in the already surcharged S&P 500 and Nasdaq that lifted them to new all-time highs. 

However, Gift Nifty (at 8 am) is ruling at 24,290, slightly lower than the Nifty futures close of 24,300. However, analysts expect the market may attempt to recover in the later part of the day, if selling by foreign portfolio investors slows down.

After the initial euphoria post Trump’s win in the presidential polls, the focus is back on the fundamentals said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd. “Unabated foreign fund outflows is denting investor sentiment. FIIs offloaded equities worth ₹4,445 crore yesterday. Subdued September quarter results continue to weigh on domestic markets,” he added.

Key corporates resuts

Today, big and widely followed companies are to announce their results, including companies such as SBI, LIC, Tata Motors, Power Finance Corp, Info Edge, Ashok Leyland, MRF, Ola Eelctric, CE Info Systems, India Cements, Equitas Small Finance Bank, Ethos, Vishnu Prakash R Punglia, Bajaj Hindusthan, GIC Housing and Goa Carbon. 

Meanwhile, trading in F&O cointinues to present a weak outlook

Options data reflects a cautious stance among traders, with dominant call writing signalling a largely bearish outlook, said Dhupesh Dhameja, Technical Analyst, SAMCO Securities. The highest open interest is seen at the 24,200-strike call (2.95 crore contracts) and the 24,200-strike put (2.67 crore contracts). Call writing is notably concentrated in the 24,250-24,500 range, suggesting resistance near 24,500, while put activity is focused between 23,900 and 24,150, highlighting support around 24,000. An uptick in call positions from 24,300 to 24,500 signals that sellers are strengthening their positions, while decreased put activity hints at emerging bearish momentum. The put-call ratio (PCR) has slipped marginally from 0.67 to 0.65, reflecting an increasingly cautious sentiment as call writers (Bears) maintain control. Additionally, the “max pain” level at 24,200 is likely to serve as a key inflection point,” he cautioned.

Meanwhile, Asian stocks are largely up in early deals on Friday. China, Hong Kong, Japan and Singapore markets are trading in the green.