Domestic markets are set to open lower on Tuesday, amid mixed global markets. Reliance Industries will be in focus after the conglomerate beat fourth-quarter profit estimates. Besides ongoing corporate results, the expiry of F&O monthly contracts on the NSE will add to volatility, analysts said
India’s GIFT Nifty was trading around 22,400, indicating a downward bias, as NIfty May on Monday closed at 22,496.
The benchmark indexes Nifty and S&P BSE Sensex extended gains for a second session in a row on Monday, tracking a rebound in global markets due to easing worries over the escalation of tensions in the Middle East.
Asian markets mostly ruling in the green, as the US equities closed up overnight.
The India VIX, a measure of market volatility, settled comfortably at 12.70, indicating a steady market.
According to Mandar Bhojane, Research Analyst, Choice Broking,
Choice International, analysis of Nifty Put options reveals a concentration of Open Interest (OI) at the 22,000 level, suggesting potential support for the ongoing expiry. On the Call side, significant OI concentrations are observed at the 22,500 and 22,600 levels, nearing an all-time high.
“Maintaining prices above this level could propel the market towards 22,800 strike prices, which could act as potential resistance levels for the upcoming expiry,” it added.
Ajit Mishra – SVP, Research, Religare Broking, said firm global cues triggered an upbeat start, followed by a range bound for most of the session.
“Participants are taking comfort from stability on the global front while earnings are offering mixed indications so far. On the index front, Nifty has reclaimed its short term moving average i.e. 20 DEMA but sustainability is critical to inch towards the record high. Amid all, traders should continue with a hedged approach and stay focused on stock selection,” he said.
Shrikant Chouhan, Head Equity Research, Kotak Securities, said for the traders now, 50-day SMA (Simple Moving Average) or 22180/73100 would act as a key support zone. as long as the index is trading above the same the pullback formation is likely to continue.
On the higher side index could find the resistance at 22400-22450/73900-74100. However, below 22180/73100 the sentiment could change. Below which we could see one quick correction till 22100-22075/72800-72600.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said: despite sticky inflation and geopolitical tensions, Dalal Street remains bullish as declining oil prices signal limited escalation in Iran-Israel tensions. Nifty’s rally continues towards its all-time high, with support at 22000; options data suggests a range of 21700-23000.
“This week, focus is on US GDP and PCE inflation reports. Today’s attention is on Q4 results of ICICI Prudential Life, M&M FINANCE, TATA CONSUMER, TATA ELXSI, and MCX. Preferred trades: Buy Nifty (22336) and Bank Nifty (47925) with targets and stops provided. Bullish outlook on stocks like CUMMINS, TCS, BANK OF BARODA, SBI, and SENCO GOLD, particularly CUMMINS with momentum play potential,” he added