While key benchmark indices may witness volatility in early trades Friday, technology stocks could face hurdles after Infosys slashed its revenue projection for the year on concerns over weak IT spend by clients. The technology major’s ADR tumbled 9.5% in overnight trade on Nasdaq. Overnight, tech-heavy Nasdaq also tumbled 2%, which is likely to have a rub-off effect on domestic software stocks.
Besides, FMCG major HUL facing challenges on volume growth in Q1 indicates things are not completely out of the woods for the FMCG pack. Technically speaking, the benchmark Nifty will struggle to make significant headway amidst overbought conditions, while support for the index is seen at 19759, even as the benchmark index is few points away from capturing the 20k summit.
Gold and silver prices ended weak on Thursday as investors booked profit after the recent gains. A rally in the U.S. dollar index, weaker crude oil prices and a rise in U.S. Treasury yields were all negative elements for the precious metals markets.
Bullions dropped as the dollar index held above 100, while investors awaits for the outcome of the monetary policy next week. The latest job data showed weekly claims fell to a two-month low, indicating robust demand for workers, while continuing claims rose the most in over three months.
As always, risk management is key, and a proper system in place prevents one from losing out too much, in case of outlier events. Have a good trading day, and may the force be with you!
Disclaimer: this post is for educational purposes only, we are not SEBI registered analysts. Trades mentioned here are not trade recommendations. Equity Investments are subject to 100% market risk, please consult your financial advisor before investing.