Domestic markets are expected to open positive on Tuesday as US stocks maintain their bullish momentum. Gift Nifty at 24,670 indicates a gap-up opening of about 70 points for Nifty. However, analysts expect the market to remain in consolidation mode due to the lack of domestic triggers. Stock-specific and sector rotation activities will continue amid profit-taking at higher levels, they added.
The focus has now shifted to theFederal Reserve chief Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium, as the market is widely expecting a steep rate cut.
Vikram Kasat, Head - Advisory, PL Capital, said: With Q1 earnings season over, the focus now turns to Federal Reserve chief Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium”
According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, Niche sectors like sugar were also in focus ahead of upcoming festive demand and media reports of the government considering a proposal to increase ethanol prices in FY24. With Q1FY25 earnings now behind, domestic equities would take cues from global factors for direction. We expect Nifty to consolidate at higher levels with sectorial rotation. This week will focus on FOMC meeting minutes and Fed Chair Powell’s speech at the Jackson Hole Economic Symposium to indicate future interest rate policy.
Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd, said, Going forward, it will be crucial to closely monitor the Banking index, as momentum in this sector could significantly boost market sentiments. In the absence of domestic triggers, it is important to be mindful of global developments as they are likely to influence market conditions. He further said it is advisable to stay informed about global trends to understand the overall market dynamics better.
Meanwhile, technically, bulls are tired, as Nifty failed to close with gains on Monday.
Om Mehra, Technical Analyst, SAMCO Securities, said: Nifty failed to sustain its previous day’s higher close and ended the session at 24,117, down 0.74 per cent. Over the last four sessions, Nifty has ranged between 23,893 and 24,383, closing mostly on the lower side. “The daily RSI hovering around 45 reveals the weakness currently. The 50 DMA is positioned near 24,000 and a move below this level could push the index toward 23,800. India VIX jumped 2.66% to 16.60, increasing pressure and discomfort for bulls,” he cautioned.