Indian stock market opened cautious ahead of the RBI monetary policy results
Apr 05, 2024
New Delhi [India], April 5 : Indian benchmark indices Sensex and Nifty 50 opened Friday's trading session with a downward trend, mirroring the losses witnessed in global markets. On Thursday, however, domestic equity indices broke a two-day downtrend and concluded higher ahead of the RBI monetary policy decision.
The Sensex declined by 267 points to 73,956, while the Nifty 50 declines 73 points to 22,451 on the early trade during Friday. Despite this, Nifty 50 formed a small negative candle on the daily chart, indicating substantial resistance at new all-time highs.
Analysis of Nifty Open Interest (OI) data highlights the highest OI on the call side at the 22,800 strike price, followed by the 23,000 strike price, while the highest OI on the put side is observed at the 22,300 strike price.
In the Nifty 50 list, 35 shares on decline while 15 shares opened in advance note during the Friday's trading session.
In the Asian market scenario, shares declined on Friday, tracking the downturn in US stocks due to uncertainties surrounding interest rates and geopolitical tensions. Australian and Japanese shares witnessed declines, with Hong Kong markets set to resume trading following a holiday.
On the commodity front, oil prices extended gains amid escalating tensions between Israel and Iran, which raised concerns about potential disruptions in oil supply from the Middle East. Meanwhile, gold experienced a slight decrease after reaching a fresh record earlier in the week, while copper continued its rally to a 14-month high, driven by rising supply risks.
"Investors are closely monitoring the US nonfarm payrolls data for March, expected to show robust job additions, potentially influencing the Federal Reserve's stance on interest rates. Fed officials' statements regarding rate cuts also contributed to market sentiment, with some suggesting a possible shift in the central bank's policy stance in the coming months" says Varun Aggarwal, Founder and Managing Director, Profit idea.
