Domestic markets are likely to open in flat note with negative bias. As there is no major trigger for the market, stock-specific action will continue due to result season, said analysts. Among the big companies, Bajaj Auto and L&T Technology Services will declare their results for September quarter today.
“We expect markets to consolidate in the near term in the absence of any major triggers. Although Q2 results would continue to provide stock-specific action,“ said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Gift Nifty at 25,040 indicates a gap down opening of about 60 points.
According to Dhupesh Dhameja, Technical Analyst, SAMCO Securities, despite forming a base and showing signs of reversal, the bearish sentiment persisted as call writing outpaced put writing, signalling traders’ caution. “Significant open interest is concentrated at the 25,200 strike calls (91.41 lakh contracts) and 25,000 puts (60.86 lakh contracts), indicating a bearish bias. Active trading in the 25,100-25,200-call range and 24,800-24,900 put range highlights resistance near 25,100-25,200 and support at 24,700-24,900. The ongoing tug-of-war at these levels will likely shape the index’s future direction. The put-call ratio (PCR) decreased slightly to 0.56 from 0.70, suggesting call writers maintain control. The max pain level remains at 25,100, serving as a pivotal point for the next move,” he said.
India VIX edged up by 0.06 per cent to 13.00. With VIX levels remaining below 15, the potential for strengthening bullish momentum increases, as lower volatility tends to attract buyers, he further said.
Meanwhile, Asian stocks are down. Japan equities plunged over 2 per cent over others in the region that declined between 0.5-1 per cent.