Domestic markets are expected to open flat on Tuesday with a positive bias amid mixed global cues. Gift Nifty at 24,810 signals a marginal gain for the Nifty at open. However, analysts said with pressure on the broader markets due to unabated selling by foreign portfolio investors, the market may remain under pressure.
“The India VIX increased by 5.56% to 13.7625, indicating a rise in market volatility and growing uncertainty, which could lead to increased price fluctuations. This makes it important for traders to remain cautious. Open Interest (OI) data shows the highest OI on the call side at the 24,900 and 25,000 strike prices, signalling strong resistance levels. On the put side, OI is concentrated at the 24,700 and 24,500 strike prices, highlighting these as key support levels,” said Hardik Matalia, Derivative Analyst, Choice Broking.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said: Nifty witnessed selling pressure from the 25000 mark, which coincides with a high concentration of open interest on the call side, implying resistance. On the downside, the 20-week average (24730), which was defended well last week, is being tested again. “So there is a standoff between bulls and bears, leading to heightened volatility. Overall, we expect rangebound price action in the 24500-25200 range from the short-term perspective,” he added.
Global stocks in the Asia-Pacific region are down in early deals on Tuesday, signalling downward pressure for Indian stocks.
Meanwhile, Emkay Global Research, which hosted Ashok Malik, Partner and India Chair, The Asia Group, for a conference call on India’s geopolitical challenges, said “it has been and will remain a tricky period for Indian diplomacy, but there has been no meaningful impact of the global turmoil so far. Key issues to look out for is the progress of the West Asia conflict and the results of the US Presidential election.”
According to Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, market sentiment remained highly pessimistic,
