Street Signs: Mkt may build on upside momentum, F&O stocks to swell to 219

Bulls in the cockpit: Is the market cleared for takeoff?

 

The domestic market has turned bullish, with the Nifty 50 climbing 4.2 per cent last week to close at 23,350. Technical analysts say the index has formed a long bull candle on both daily and weekly charts, signalling further gains. Nagaraj Shetti, senior technical research analyst at HDFC Securities, expects the Nifty to move towards the next resistance at 23,800 in the near term, with immediate support at 23,250. Amol Athawale, vice-president — technical research at Kotak Securities, shares a similar outlook but advises traders to follow a “buy on dips and sell on rallies” approach. He cautions that temporary overbought conditions could trigger profit booking at higher levels. 

 

Foreign funds: Easing off the exit ramp?

 

Foreign portfolio investor (FPI) ownership in Indian companies has fallen to a decade low, yet their influence on domestic markets remains strong. This was evident in the sharp downturn over the past six months, driven by FPI outflows of ₹2 trillion. In this context, Friday’s net inflow of ₹7,470 crore sparked optimism. However, a closer look shows that FPIs remained net sellers of domestic equities, excluding a one-time ₹10,000 crore net purchase tied to FTSE index rebalancing. So far this month, FPIs have offloaded over ₹15,000 crore in equities. While easing US bond yields and a weaker dollar point to a possible rebound in foreign inflows, experts remain sceptical about a sustained FPI comeback given the uncertain global outlook.

   

Derivatives rocket fuel: F&O stocks blast off to 219

 

Hindustan Zinc, PNB Housing Finance, and Inox Wind are set to enter the derivatives segment on March 28, bringing the total number of futures and options (F&O) stocks to 219 — up from 182 less than five months ago. Their share prices have already risen since March 6, when the National Stock Exchange announced their inclusion. Market participants say further gains cannot be ruled out, given the positive sentiment around derivatives additions and the broader market uptrend. On February 28, Amara Raja Energy & Mobility, IIFL Finance, Patanjali Foods, and Titagarh Rail Systems were added to the F&O segment.