Domestic markets are expected to open on a flat to positive note on Tuesday, signal trading at Gift City. After a strong bounce back on Monday, analysts expect domestic markets remain in consolidation mode. Gift Nifty 24,355 indicates a positive opening.
F&O expiry this Thursday on the NSE will keep market volatile. The result season will keep stock-specific action, said analysts.
Jitendra Gohil, Chief Investment Strategist, Kotak Alternate Asset Managers, said: “While further corrections cannot be ruled out, we continue to recommend maintaining an equity investment strategy with a preference for low beta names. Investors may also consider high-quality mid-cap companies that have experienced significant valuation corrections. Overall, we maintain our preference for large-caps over mid and small-caps.”
Cues from Asian markets are mixed but volatile. While Hang Seng and Nikkei eked out marginal gains, Taiwan slipped sharply.
Vikram Kasat, Head – Advisory, PL Capital, said: Next few months are crucial given US presidential elections, state elections in India, demand scenario in festival and wedding season and food inflation trends in India. “With Diwali approaching, the sentiment is expected to remain upbeat in this holiday-shortened trading week,” he said.
The India VIX declined by 2.34 per cent to 14.29, indicating reduced market volatility and a short-term cooling of investor anxiety. “Open Interest (OI) data shows the highest OI on the call side at the 24,500 and 24,800 strike prices, marking these as strong resistance levels. On the put side, OI concentration at the 24,000 and 23,800 strike prices highlights these as key support levels,” said Mandar Bhojane, Research Analyst, Choice Broking.
