Market remains positive

Mumbai, Apr 25: US stock futures are taking a sharp dive on Thursday morning, spurred by Meta Platforms' substantial 15% stock price plummet following a disappointing revenue outlook.

“While a sluggish volatility index hints at hopes for stability in the upcoming elections and geopolitical tensions, concerns linger over escalating conflicts in the Middle East, albeit tempered by a drop in oil prices,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

All eyes are on Friday's inflation report amid the Federal Reserve's data-dependent stance. In the Indian market, FIIs turned net sellers while DIIs made purchases. Attention is also focused on the release of Q4 earnings, with bullish sentiments prevailing and specific stocks like CUMMINS.

On Wednesday, the benchmark indices showed a range-bound movement. Sensex was up 114 points. Among sectors, the metal index outperformed by gaining over 2.5%, while the IT index declined nearly 1%.

Technically Sensex has been moving in the range of 73,500 to 74,100 for the last two days.However, the short-term structure of the market remains positive.

“Our view is that if Sensex falls below 73,500 on a closing basis, then we may see a quick correction to 73300-73200,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.

On the other hand 74,100 will be the immediate breakout levels for the bulls. Above this, the market can go up to 74400-74500.

The current market structure is non-directional. Therefore, level-based trading would be the ideal strategy for day traders.