Stock markets are expected to open on a flat note on Friday, with mixed signals coming from global cues and company earnings. While hopes of easing tensions in West Asia may support sentiment, weak guidance from IT major Wipro could limit gains.
GIFT Nifty futures were trading at 24,178 at 8:06 am, suggesting that the Nifty 50 may open close to its previous session’s level of 24,196.75. This points to a muted start for the markets after recent volatility.
Asian markets were down 0.6% on Friday as concerns around fuel supply and uncertainty over the outcome of upcoming U.S.-Iran talks weighed on investor mood. There are still doubts over whether the discussions will help reduce disruptions in the Strait of Hormuz, a key oil route.
There are some positive signals as well. A 10-day ceasefire between Lebanon and Israel came into effect on Thursday. US President Donald Trump has also said that the next round of talks with Iran may take place over the weekend.
Oil prices have also softened, which could help India. Brent crude fell about 1% to $98 per barrel in early Friday trade. Lower oil prices are generally positive for India, which imports a large share of its needs.
This has also supported foreign investment flows. Foreign portfolio investors bought Indian shares worth Rs 3.82 billion on Thursday, marking the second straight session of buying, according to provisional data.
Despite some positive global cues, weak results from Wipro are likely to keep IT stocks under pressure. The company’s US-listed shares fell 4.8% overnight after it reported soft quarterly numbers and gave a weak outlook for the first quarter.
Wipro pointed to lower spending by its banking and financial clients in the US due to economic uncertainty. This could impact overall sentiment in the IT sector, which has a large exposure to global demand.
From a technical view, markets appear to be in a consolidation phase after the recent rise. Analysts say the indices may move within a narrow range in the near term.
Hitesh Tailor, Technical Research Analyst at Choice Equity Broking Private Limited, said the is currently near key resistance levels.
“From a technical standpoint, the index is consolidating near resistance levels, with price action indicating a pause after the recent up move. Key technical levels suggest that support is placed in the 77,400–77,500 zone, which is likely to act as a demand area on declines, while resistance is seen around 78,400–78,600, where upside may face supply pressure. The near-term outlook remains cautiously neutral, with volatility likely to persist due to profit booking at higher levels and external uncertainties, while dips may continue to attract selective buying interest,” he said.
Overall, markets are expected to remain range-bound at the open, with investors tracking global developments, oil prices and corporate earnings for further direction.
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