Domestic markets are likely to open in positive zone on Tuesday on global cues. However, analysts expect the market to move in a narrow range with lack of participation. As the market currently lacks triggers, sector rotation and stock-specific action will continue, they added.
- Buzzing stocks. Stocks that will see action today: November 21, 2023
Avdhut Bagkar Technical and Derivatives Analyst, StoxBox, said the 50-index continued to trade torpidly minimising its trading range yet another time within the proximity of its previous day’s range on relatively lower volume while the VIX surged 2.71% intraday. This tightening of price action comes ahead of the immediate supply zone of 19850-19900. “On the derivative front too, the 19800 CE continued to see the highest build-up of open interest indicating immediate resistance,” he added.
Gift Nifty at 19,800 indicate a gap-up opening of about 50 points for Nifty. Asian stocks are mixed despite US markets closing strong. While Japan markets are down, Korea, Australia and Taiwan markets eke out marginal gains in early trade on Tuesday.
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: Anticipating a period of consolidation in the absence of clear global cues, the market’s trajectory will likely hinge on the movements of US bond yields, the dollar index, and crude oil prices, as well as institutional flows. The market’s stability may be influenced until the conclusion of state elections, at which point a discernible trend might materialise.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Elevated long-term interest rate trends and a weakening global economy continue to hurt inflows and market movement. “
The recent softening of inflation in the US & India and the negative trend of crude are expected to help the view on global equity and India in the short term, he said. In that context, the ease in FIIs selling is helping the domestic markets but continues to consolidate primarily due to India’s premium valuation relative to global peers. “In this scenario, the IT sector is benefiting; however, valuation continues to be on the higher side compared to long-term history, suggesting a cautious approach in the sector in the medium term,” he added.