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Domestic stock markets to open on a firm note amid positive global cues. SGX Nifty at 17,465 indicates 100 points gain for the Nifty, which closed on a firm note on Monday.
Equity benchmarks across Asia-Pacific region, too, trading with a positive bias in early deal on Tuesday, with gains in a 0.3-1.5 per cent range, following a sharp surge in the US stocks overnight.
Meanwhile, market analysts pointed out that the result season is a mixed bag so far with majority of IT companies declaring healthy numbers, while the cement sector reported a rather weak figures.
Key risks
Mitul Shah-Head of Research at Reliance Securities, said ongoing festive season has led to improved auto sales with strong PV and CV sales.
"However, Investment and corporate capex are yet to pick up in a big way. Inflation continues to remain sticky, both, in the domestic and the US economy despite the earnings season which started on positive note," he said.
"India's growth remains strong and expected to be one of the fastest growing economies in the world, while global recession and downgrading of growth persisted for major economies," Shah added.
VIX below 20
Analysts said softening VIX and slowdown in FPIs selling will help market sustain gains.
According to Choice International, the India VIX has managed to close under 20 at the 18.42-levels.
The trend may still remain bullish for the short-term with profit booking at higher levels, it said.
On the call side, the highest open interest (OI) was witnessed at 17500 followed by 17700 strike prices while on the put side, the highest OI was at 17000 followed by 17100 strike price.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Even though the Q2 preview analysis forecast a muted outlook, it is fairly factored-in considering the consolidation of the last one month.
"At the same time, Q3 results has been enhanced due to moderation in operation cost, forecasting a QoQ improvement in profitability and reducing risk of earnings downgrade."
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