After a stunning two day rally, the benchmark indices on Dalal Street may take a breather on the last trading session of the week amid weak global cues. Trade tensions between U.S. and China, a prolonged U.S. shutdown, coupled with lackluster performance from Wall Street overnight could weigh on investors' sentiment.
"Mixed global cues suggest a cautiously optimistic start for Indian equities. Intensifying trade tensions between the U.S. and China, along with a failed Senate vote to extend government funding have injected a note of caution into global markets," said Ponmudi R, CEO of Enrich Money.
At 7.10 a.m., the GIFT Nifty index was trading at 25,605, lower by 40 points or 0.15 percent.
Impacted by the ongoing U.S.-China trade war and heightened concerns about the credit market following bad loans at two US banks led to a risk-off sentiment. The tech-heavy Nasdaq Composite fell 0.5 percent, the S&P 500 slipped 0.6 percent, and the Dow Jones Industrial Average was also down 0.6 percent.
Asian shares slipped at the open Friday after risk sentiment dimmed on Wall Street as US stock futures indicated further weakness.
Key levels to watch on October 17
In the previous session, the Nifty 50 index managed to hold its gains and ended near the day’s high, closing above the 25,550 mark with a strong bullish candle. "This positive momentum suggests continued strength in the near term. On the downside, immediate support is placed at 25,500, followed by 25,400, while on the upside, resistance is seen at 25,700 and 25,800 levels," said Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking.
In the derivatives segment, the highest Call Open Interest (OI) was observed at the 25,600 and 25,700 strikes, while maximum Put OI was concentrated at the 25,500 and 25,400 strikes. This OI setup suggests a strong support base around 25,500–25,400, while resistance is likely to emerge near the 25,600–25,700 zone. A decisive move beyond this resistance range could further strengthen bullish momentum in the near term.
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