The domestic markets are set to open on a positive note, thanks to strong global cues. Gift Nifty at 19,534 indicates that the index has the potential to breach the 19,500-mark once again. Analysts expect the domestic markets to continue to consolidate amidst volatility. 

On Tuesday, FPIs turned buyers, albeit marginally. If they resort to heavy buying like before, one could see a strong rally from the current levels, said analysts. With the impending F&O expiry on Thursday, and domestic and global uncertainties, the market will remain under pressure, they added.

Riches Vanara, Technical And Derivatives Analyst, StoxBox, said: Looking ahead, with a lack of domestic triggers, our focus would be on the release of Consumer Confidence for August in the US, to determine the direction of global markets in the evening, which will be an indicator for the domestic markets today.

US stocks jumped overnight, as the Labour Department’s Job Openings and Labour Turnover Survey (JOLTS) released on Tuesday showed that the number of job openings stood at 8.827 million in July, down for the third straight month. This raised hopes for a pause in interest rates by the US Federal Reserve in its September meet.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said:  Sectorally, it was a mixed bag, with buying seen in metals, realty, consumer durables, and auto. The metal sector saw some momentum after China announced a stimulus to support the economy. Niche sectors such as speciality chemicals saw buying interest after a long time on the back of news flows regarding the surge in chemical prices in China. The market is moving in a range and we expect this trend to continue given the data-packed week and monthly derivatives expiry. Further, consistent selling by FIIs and a poor monsoon in August have raised concern among investors, keeping the upside limited.

However, analysts expect the broader markets to remain strong.

“The Nifty Small cap and Midcap indices have registered a fresh all-time high on closing basis. The breadth of the market is strong as more than 83 per cent of the NSE 500 stocks are placed above their respective 200 DMAs,” said Devarsh Vakil - Deputy Head, Retail Research, HDFC Securities.

Related Topics