The domestic market ended higher on Thursday, with the benchmarks snapping their three-day losing run. However, gains were capped due to rising oil prices amid escalating US-Iran tensions. The Sensex and the Nifty 50 rose by 0.20%.
On Friday, the market is expected to remain under pressure as crude oil prices, benchmark Brent crude, are at $108 per barrel as fighting between Yemen-based Houthi militants and Saudi-backed forces intensified.
"The Nifty may witness some consolidation following the recent decline; however, the overall tone is likely to remain cautious given the pressure from elevated crude prices, geopolitical uncertainty and persistent FII outflows," said Ajit Mishra, SVP of Research at Religare Broking.
"The immediate support remains around 23,100–23,300, while 23,600–23,800 is likely to act as the key resistance zone. We maintain a cautious-to-negative stance, favouring a stock-specific approach with positions on both sides and strict risk management, while avoiding aggressive directional exposure," Mishra said.
Mishra underscored that Granules India has delivered an upside breakout from a flag pattern, accompanied by rising volumes, while maintaining a sequence of higher highs and higher lows, indicating a sustained uptrend.