Indian equities on the F&O expiry day opened atfer a weak close in the previous session. At the start, Nifty traded weak by 0.21 per cent or 49.65 points at 23,639.3, while the Sensex was down 0.28 per cent or 215.93 points at 77,932.56.

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Broader markets also showed weakness, while Bank Nifty traded with a cut of 0.4 per cent.

Sectorally, it was a sea of red with only auto and private bank indices mildly in the green. Leading the losses were indices like Realty, Oil & Gas and PSU Bank. 

The Nifty IT index ahead of TCS Q3 results due to be announced after market hours today also saw some selling pressure. At the current juncture, the key watch-outs are TCS's Q3 results and the US Non-Farm Payroll data due to be released on Friday, said 

Prashanth Tapse, Senior VP (Research), Mehta Equities.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "So far in January FIIs have sold equity for Rs 10,419 crores. With the dollar index at 109 and the 10-year bond yield at 4.67 per cent, FIIs are likely to continue with their selling strategy putting pressure on the market in the near-term."
 
With the Q3 results season starting from today there will be market reaction to results. The results of TCS will give an indication of what is in store for the IT sector. The strength of the U.S. economy and the depreciation of rupee will be tailwinds for the IT sector, added Vijyakumar.

Technical outlook

Anand James, Chief Market Strategist, Geojit Financial Services said, "Downsides eased off on anticipated lines without penetrating 23400 yesterday. Even though the pull back thereof did not attract any momentum, the inside bar and the hammer formed in the last two days, encourages us to watch out for a potential upmove aiming 23900 or 24000."

We will need a push above 23752 for confirmation though, while downside markers may be placed near 23630 or 23570. As maintained yesterday, an outright fall below 23263 may take a while to evolve, with major supports below seen at 23000 and 22260, he added.

Asian markets

Most Asian stocks fell in Thursday's trade in the backdrop of increasing bets that the US Federal Reserve will go less aggressive in its rate cut cycle this year. Importantly, the Federal Reserve's December meeting minutes reiterated the bank’s hawkish outlook on rates. 

Japan's Nikkei was down over 1 per cent, while Singapore's Straits Times also traded with cut, meanwhile, Hong Kong's Hang Seng was up by a tad.

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