Pre-Market Update: Today’s Trade Setup Insights and Key Strategies to Watch!

The domestic markets have exhibited resilience as they continued their upward momentum for the third consecutive session, with the Nifty Index surging nearly 2% last week. This bullish trend is attributed to robust quarterly earnings, a decline in crude oil prices, and favorable global cues. Analysts suggest that the ongoing strength in Indian equities is likely to persist, bolstered by healthy domestic macroeconomic indicators and a solid first-quarter earnings season that has elevated investor confidence.

Technically, the market outlook remains positive, as the Nifty Index has consistently traded above the critical 50-day Exponential Moving Average (EMA) on the daily chart, indicating a sustained bullish trend. Short-term traders should note immediate support positioned at 24,200, while resistance is observed at 24,500. Meanwhile, the India VIX, a barometer of market volatility and investor sentiment, has decreased by 3% to settle at 11.76, reflecting diminishing fears among market participants.

On the flows front, foreign portfolio investors (FPIs) have shown renewed interest, net buying shares worth Rs 277 crore on Friday, while domestic institutional investors (DIIs) were net buyers at Rs 2,260 crore. This combination of foreign and domestic buying signifies continued confidence in the equity markets. Concurrently, the Indian rupee remained strong, appreciating by 7 paise to close at 95.43 against the US dollar, supported by sustained foreign capital inflows and potential backing from the Reserve Bank.

As investors navigate the market this week, attention will be directed towards the Reserve Bank of India’s upcoming monetary policy decision, along with the release of India’s Manufacturing and Services Purchasing Managers’ Index (PMI) data. Additionally, developments concerning crude oil prices and geopolitical tensions in West Asia are poised to impact market sentiment, highlighting the necessity for investors to remain vigilant amidst these dynamics.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)