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Indian market outlook points to gap-up as US jobs loom
Vaishali Parekh at Prabhudas Lilladher expects Nifty 50 to open above 24,630, with support seen near 24,400.
India’s stock market was set for a potential upside open on Tuesday after the Gift Nifty Live index indicated a gap-up versus Friday’s Nifty 50 close, while sentiment remained cautious ahead of closely watched U.S. non-farm payrolls data, according to LiveMint Markets.
LiveMint Markets said Friday’s session ended lower, with a sharp sell-off in financial stocks, lingering uncertainty around a lasting peace agreement in the Middle East, and investor caution into the U.S. jobs report. It added that the U.S. jobs data could influence expectations for the Federal Reserve’s policy path.
The report attributed recent weakness in financials to concerns sparked by the Reserve Bank of India’s draft proposal to tighten lending norms for non-banking financial companies, raising questions about the NBFC sector’s long-term growth prospects. It noted that Bajaj Finance and Bajaj Finserv were among the biggest drags, with selling spreading across the broader NBFC space.
On technical levels, LiveMint Markets cited Vaishali Parekh of Prabhudas Lilladher forecasting the Nifty 50 could open above 24,630. It also said the index finished Friday just below the 24,600 zone, faced resistance near the 200-period moving average around 24,700, and that a break above 24,700 would be needed for a fresh upward move toward 25,000 and 25,500, while near-term support was seen near 24,400.