The Indian benchmark equity indices Sensex, and Nifty 50 are expected to start the day with slight gains, navigating a global background that is mixed, while coping with domestic geopolitical worries.
Investors continue to focus on corporate earnings and the technical level of the major indices.
Early indicators suggest a fairly subdued start to the trading session.
As of 7:16am, the Gift Nifty Futures were trading at around 24,571, a premium of about 17 points over the previous Nifty close. This suggests a neutral to slightly positive start for the Nifty.
The market closed on Monday with a positive close, as the Nifty 50 finished above 24,400 (at 24,461.15), and the Sensex ended up 0.37%, at 80,796.84.
Investor sentiment remains tempered despite the recent market resilience due to the geopolitical tensions that continue between India and Pakistan after the Pahalgam terrorist attack.
The underlying strength in the US and foreign investors’ interest continue to provide support.
Market outlook and technical levels
As the indexes are hovering near their recent highs, technical analysts closely monitor key levels. Shrikant Chouhan of Kotak Securities’ Head Equity Research identified 80,500 for the Sensex as a critical near-term resistance zone.
Live Mint suggested that Sensex might move to 81,000 – 81300.
He warned that “a rejection of 80.500 could cause a rapid intraday correction… below the same level, Sensex may retest levels of 80.200 – 80,000.”
Nagaraj Shetti of HDFC Securities’ Senior Technical Research analyst noted that Monday’s Nifty 50 action had formed a small positive candle with a minor upper shadow, signalling a possible breakout above the 24500-24600 barrier zone.
Shetti, a Live Mint reporter said: “If Nifty50 manages to break above 24,600 then it could be an upside breakout… that is uptrend continuation pattern.”
If the breakout happens, he sees possible targets around 24,800-25,000 with an immediate support at 24,250.
Mandar Bhojane, a broker at Choice Broking, has confirmed these levels by analyzing the Nifty option data. This analysis shows a heavy open interest in Calls at 24,500-24600 (resistance), and corresponding Puts at 24,300-24,000 (support).
Bank Nifty, which closed 0.36% below the Nifty 50 on Monday at 54,919.50, underperformed the Nifty.
The small candle formed here suggests that recent gains will continue to consolidate.
Brokerage companies suggest that dips in support areas may present opportunities to buy during this consolidation phase.
The focus shifts from Q4 earnings to key stocks and companies
Stocks are primarily affected by the ongoing earnings season in the fourth quarter.
Today (Tuesday), several notable companies will announce their results, including Godrej Consumer Products. Bank of Baroda. Aadhar Housing Finance. Paytm. Polycab India. MGL. Hindustan Petroleum Corp. and CG Power.
Also, certain stocks such as Tata Motors or Polycab India may be highlighted due to recent corporate performance.
Coforge (Indian Hotels Company), Glenmark Pharma (DCM Shriram), CAMS (Cams Products), IEX and Paras Defence are other stocks that could see activity.
VLA Ambala (Co-Founder, Stock Market Today) provided traders with technical insight, by identifying the key levels of support and resistance for Nifty 50 (Support : 24,000.-24.160; Resistance : 24,500-24.680), and Bank Nifty (53.80-55.000; Resistance : 56.350-56.350) during intraday trading.
Investors will closely monitor the markets as they navigate the interaction of global factors, domestic issues, and corporate earnings to determine if recent bullish momentum is able to overcome resistance levels, or if consolidation begins.
The post Indian Markets Open: Sensex and Nifty Eye Muted Gains; Focus on Earnings, Global Cues May Change As Updates Develop
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