Nifty Futures Indicate Positive Opening After Three-Day Decline

The Indian equity markets are poised for a positive opening on Friday, following three consecutive sessions of losses. GIFT Nifty futures indicated a rise, trading at 22,846 at 8:30 AM IST, compared to the previous close of 22,687.65. However, the gains may be tempered by rising oil prices amid escalating tensions in West Asia.

This week has seen both the Nifty and Sensex decline by approximately 2%, primarily driven by concerns over energy supply disruptions following recent Houthi attacks on Saudi Arabia, a major oil exporter. The surge in Brent crude oil prices to USD 113.5 per barrel has further complicated the market outlook, leading to cautious trading.

Hariselvan Radhakrishnan, CEO of HST Wealth, noted that the immediate support level for the Nifty stands at 22,700, with 22,600 following closely. For a more robust recovery, the index must surpass 22,900 and maintain levels above 23,000. He warned that failing to hold above 22,800 could indicate ongoing weakness influenced by international market trends and high crude prices.

Market analysts have observed that while buyers are attempting to defend lower levels, selling pressure persists during rebounds, resulting in a cautious market sentiment. On Thursday, foreign portfolio investors were net sellers, resulting in outflows totaling Rs 3,458.70 crore, which has added to the market's volatility.

As Asian markets opened lower, reflecting losses in technology stocks from Wall Street, investors are closely watching specific stocks. Colgate-Palmolive India is in focus after reporting a higher quarterly profit, driven by strong demand for its toothpaste products. Meanwhile, Swiggy's plans to expand its quick-commerce business, Instamart, following a larger-than-expected loss in the September quarter, are also attracting attention.