Gift Nifty signals gap down opening as analysts predict continued market strain

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Domestic markets will remain under pressure on Thursday as well. Analysts expect the market to remain under pressure with the result season underwhelming.

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Gift Nifty at 21,393 indicates a gap down opening of over 700 points as Nifty futures February futures ruling at 22,175 and against January futures value of 21,589.55. Global stocks are mixed with Japan, Singapore, Korea, and Taiwan stocks, even as Australia, China, and Taiwan stocks are down.

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According to analysts, the market may remain under pressure, and every rise will encounter selling pressure during the day.

Jaykrishna Gandhi, Head – Business Development, Institutional Equities, Emkay Global Financial Services on markets, said: “Last week Nifty had a runaway rally as we kick start earnings season with large cap IT names beating estimates on margins helped by cost optimisation. Management commentary around discretionary spending remained weak.

“This week markets took a turn today with the Nifty Bank index falling about 4 per cent as HDFC bank share price slipped 7 per cent on concerns around a slowdown in deposit growth. As talks around rate cuts continue and as banks struggle with balancing credit growth vs margins, we likely see a tactical rotation towards good quality NBFCs,” he added.

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As the Street is baking in good earnings growth for most mid-cap names, incrementally, it will be driven by how close actual releases come vs expectations built.

Saurabh Jain- Equity Head, Research- Fundamentals, SMC Global Securities Ltd, said: Timing the market is challenging, but it may be prudent to gradually accumulate positions in a market downturn. “Although some stocks may experience short-term declines, if the fundamentals of a sector and specific stocks remain strong, it could be an opportunity to strengthen your portfolio. Investors should consider buying fundamentally robust stocks and sectors, focusing on the long-term perspective rather than short-term market fluctuations,” he added.

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