Indian equity benchmark indices, Sensex and Nifty 50, are anticipated to open with marginal gains on Tuesday, navigating a mixed global backdrop while grappling with persistent domestic geopolitical concerns.
Investor focus remains firmly on the ongoing corporate earnings season and key technical levels for the headline indices.
Early indicators point towards a relatively subdued beginning for the trading session.
Trends on Gift Nifty futures, trading around the 24,571 level (a slight premium of approximately 17 points to Nifty futures’ previous close) as of 7:16 am, suggest a flattish to marginally positive opening for the Nifty 50.
This follows a positive closing on Monday, where the domestic market extended its gains, with the Nifty 50 finishing above the 24,400 mark (at 24,461.15) and the Sensex closing up 0.37% at 80,796.84.
Despite the market’s recent resilience, investor sentiment continues to be tempered by the ongoing geopolitical tensions between India and Pakistan following the Pahalgam terror attack.
While global cues were mixed overnight (Wall Street indices closed lower), the underlying domestic strength and continued foreign investor interest have provided support.
Technical levels and market outlook
Technical analysts are closely monitoring key levels as the indices hover near recent highs. For the Sensex, Shrikant Chouhan, Head Equity Research at Kotak Securities, identified 80,500 as a crucial near-term support zone.
“Above the same, Sensex could move up to 81,000 – 81,300,” he suggested Live Mint.
However, he warned, “a dismissal of 80,500 could trigger a quick intraday correction… Below the same, Sensex could retest the level of 80,200 – 80,000.”
On the Nifty 50 front, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted Monday’s action formed a “small positive candle… with minor upper shadow,” signaling a potential upside breakout attempt above the 24,500 – 24,600 hurdle zone.
“If Nifty 50 manages to move above 24,600 levels, then that could be a decisive upside breakout… which are uptrend continuation patterns,” Shetti told Live Mint.
He sees potential targets near 24,800 – 25,000 if the breakout occurs, with immediate support placed at 24,250.
Analysis of Nifty options data by Mandar Bhojane at Choice Broking reinforces these levels, showing heavy Call open interest at 24,500 and 24,600 (resistance) and significant Put open interest at 24,300 and 24,000 (support).
While the headline Nifty 50 gained on Monday, the Bank Nifty underperformed, closing 0.36% lower at 54,919.50.
This formed a small bear candle, suggesting continued consolidation after recent strong gains.
Brokerage firms suggest dips towards support areas could present buying opportunities within this consolidation phase.
Focus shifts to Q4 earnings and key stocks
The ongoing fourth-quarter earnings season remains a primary driver of stock-specific action.
Several notable companies are scheduled to announce their results today (Tuesday), including Godrej Consumer Products, Bank of Baroda, Aadhar Housing Finance, Paytm, Polycab India, MGL, Hindustan Petroleum Corp, and CG Power.
Additionally, stocks like Tata Motors and Polycab India will be in focus due to specific corporate developments or recent performance.
Other stocks potentially seeing activity include Coforge, IRCON, Indian Hotels Company, Glenmark Pharma, DCM Shriram, CAMS, IEX, CCL Products, and Paras Defence.
VLA Ambala, Co-Founder of Stock Market Today, provided technical insights for traders, identifying key support and resistance levels for both Nifty 50 (Support: 24,000-24,160; Resistance: 24,500-24,680) and Bank Nifty (Support: 53,800-55,000; Resistance: 56,000-56,350) for the intraday session.
As the market navigates the interplay of global cues, domestic factors, and corporate earnings, investors will be watching closely to see if the recent bullish momentum can overcome resistance levels or if a period of consolidation takes hold.
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