SGX Nifty points a healthy gains for domestic markets, as global stock markets edged up sharply due to softening of crude oil prices. All eyes are on the Russia-Ukraine conflict, as there appears to be some kinds of headway in the talks. Global analysts expect a rise of 25 basis points in benchmark interest rates for the first time since 2018 by the US Federal Reserve, which is currently deliberating on the key proposals that will be out on Wednesday.

SGX Nifty futures at 16,920 indicates a gain of 250 points for Nifty, as Nifty futures on Tuesday closed at 16,669 on the NSE.

Ruchit Jain, Lead Research, 5paisa.com, said, “Global events such as news flows on Russia-Ukraine geopolitical tensions and the outcome of Fed meeting are likely to drive the near term momentum in the market.

“However, technically the index has cooled off from the resistances and could enter into a broad consolidation phase before the next phase of the trended move. We expect the volatility to continue and hence, traders should look for opportunities on both sides of the trade,” he added.

Some analysts believe Nifty will cross the 17,000 mark sooner than later. According to them, the recent victory of Bharatiya Janata Party in the assembly elections bodes well for the Indian economy and equities, as the Central government will pursue its reform agenda.

Experts advise caution

However, analysts advise investors to remain cautious.

"While there was a decline in oil prices initially, the market is still prone to sell-offs as macroeconomic uncertainty still remains. Moreover, investors await on the central bank's decision to raise interest rates as inflationary pressures continue to affect the economy. However, a very aggressive rate hike could lead to a slower economic growth," said Mitul Shah, Head of Research, Reliance Securities.