Nifty to gain 150 points at open

Domestic markets on Friday are likely to resume momentum after Thursday’s halt amid positive global cues. Gift Nifty at 24,520 signals a gap-up opening of about 150 points for Nifty, as foreign portfolio investors resort to aggressive buying. However, risk-averse traders will remain on the sidelines due to escalation of tensions in the Kashmir region. FPI buying continued for the seventh successive day on Thursday, as they pumped in over ₹8,250 crore.

India has taken significant diplomatic measures against Pakistan. India has reduced its diplomatic engagement with Pakistan, including expelling Pakistani defence advisors and cutting embassy staff in Islamabad. For the first time since its inception in 1960, India has suspended the Indus Water Treaty, a crucial water-sharing agreement between the two nations. The main land border crossing between India and Pakistan has been closed, halting cross-border movement.

“These developments have introduced volatility into the Indian financial markets. Sectors sensitive to geopolitical risks, such as energy and infrastructure, have witnessed increased volatility. Heightened tensions have led to risk aversion among investors, prompting a sell-off in equities,” said Narender Singh, smallcase manager and Founder at Growth Investing.

“Further actions by either nation could exacerbate tensions, impacting market stability. Government measures to mitigate economic fallout will be crucial in restoring investor confidence. International diplomatic responses may influence the trajectory of the conflict and, by extension, market dynamics,” he cautioned and advised investors to monitor the situation closely, as prolonged geopolitical tensions could have lasting effects on market performance.”

Meanwhile, global stocks are up, led by US markets. Equities across the Asia-Pacific region are ruling sharply higher in early deals on Friday.

F&O trading indicates bullish momentum said analysts.

Chandan Taparia, Head, Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd., said: the FIIs’ long-short ratio is hovering near 30 per cent. Range-bound India Vix and increasing put-call ratio suggests that bullish momentum may continue. Hold above 24100 zones for an upmove towards 24400 then 24600 levels, while support can be seen at 24100 and then 24000 level.

On the options front, Maximum Call OI is at 25000, then 24500 strike, while Maximum Put OI is at 24000 then 23500 strike. Call writing is seen at 24800, then 25000 strike, while Put writing is seen at 23500, then 24000 strike. Options data suggests a broader trading range between the 23500 to 25000 zones, while an immediate range is between 23800 to 24700 levels.

Published on April 25, 2025