Pre-market action: Here's the trade setup for today's session

Synopsis

Benchmark indices experienced a decline on Friday due to high Brent crude oil prices and global market weakness. Nifty was noted to face immediate resistance at 22,850 levels, with previous week's high acting as a hurdle. The rupee fell against the dollar for the second consecutive day, impacted by rising crude prices. Foreign portfolio investors were net buyers, while domestic institutional investors also increased their holdings.

Benchmark indices closed in negative territory on Friday as elevated Brent crude oil prices, trading near a six-month high, and weak global cues continued to weigh on investor sentiment. Selling pressure remained broad-based, with the broader market witnessing a sharper decline than the frontline indices. Technically, analysts say, on the higher side immediate resistance is placed at 22,850 levels for Nifty being the presence of 20 days EMA, while previous week high of 23,175 is likely to act as major hurdle in the coming week.

STATE OF THE MARKETS

Tech View: On the upside, immediate resistance is placed at 22,800 (20-DMA zone) and 23,000, while 22,600 remains a crucial support. A cautious, level-based trading approach is advisable.

India VIX: India VIX, which is a measure of the fear in the markets, rose 7% to settle at 16.86 levels.

US stocks fall

Wall Street's main indexes closed lower on Friday even as technology shares steadied somewhat to end a turbulent week for the market-driving AI trade, and investors looked ahead to a busy slate of corporate earnings and a Federal Reserve interest-rate policy meeting.

Read more: Nifty bears tighten grip as crude, geopolitical risks, FII outflows mount: 5 factors to decide D-Street’s fate next week

Stocks in F&O ban today

1) Ambuja Cement

2) Kaynes

3) SAIL

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Read more: Ahead of Market: 10 things that will decide stock market action on Monday

FII/DII action

Foreign portfolio investors net bought shares worth Rs 888 crore on Thursday. DIIs, meanwhile, were net buyers at Rs 3,235 crore.

Rupee

The rupee depreciated for the second consecutive day and fell 12 paise to close at 94.93 against the US dollar on Friday, pressured by rising crude prices and sluggish domestic equities, with ongoing Saudi-Houthi tensions threatening to keep oil markets volatile.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here

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