The Indian equity benchmark indices are likely to open lower on Thursday following weak global cues and ahead of the Reserve Bank of India’s (RBI) monetary policy announcement.
The trends on Gift Nifty also indicate a negative start for the Indian benchmarks. Gift Nifty was trading at 19,605 as compared to Nifty futures’ previous close of 19,693.
The recent correction in the domestic market is largely on the back of weak global cues. However, the index futures data has started to improve as FIIs covered some of their short positions due to which the ‘Long Short Ratio’ has improved marginally from 40% to 45% in the last couple of sessions.
On Wednesday, Nifty remained weak for most of the session but late-hour buying helped the index close 62 points higher at 19,633.
Nifty formed a positive candle on the daily chart with a long lower shadow.
“Technically this pattern indicates a bullish hammer type pattern (not a classical one), but the placement of the pattern is not ideal. The negative chart pattern like lower top and bottoms is still intact, but there is no confirmation of any lower top reversal pattern yet," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
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