Sensex and Nifty are likely to open weak on Tuesday, amid mixed global cues. Domestic markets are continue to remain under pressure due to high valuation and a few disappointing numbers from index heavyweights, said analysts.

With foreign portfolio investors slowing down their investments into Indian markets, experts believe the market may see a correction A Chennai-based investment advisor said market is heading for a healthy correction and benchmarks will remain in consolidation mode.

Besides, F&O expiry this Thursday on the NSE will keep market volatile and activity will be entered around individual stocks.

As the results season is peaking, traders may have started unwinding their long positions, creating pressure on the Nifty, said Deepak Jasani - Head Retail Research, HDFC Securities.

According to Vikas Jain, Senior Research Analyst at Reliance Securities, The earnings season will pick up pace in the coming days. While companies in the IT sector reported decent order wins, revenue has remained under pressure due to cuts in spends by the clients. Consumption expenditure remains muted due to elevated price levels. “Globally, the U.S economy seems to be resilient but investors anticipate another 25bps rate hike. Investors will follow the management commentary and keep an eye on macroeconomic data for further cue,” he added.

Gift Nifty at 19720 indicates a downward bias as Nifty August futures on the NSE closed at 19811.50.

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities, said: The Future Open Interest (OI) data indicated a build-up of fresh short positions. The Foreign Portfolio Investors (FPIs) were seen liquidating their long positions in Index futures as indicated by the Long-Short Ratio.

“The resistance for Nifty shifts down to 19,800 from 20,000 on account of heavy call writer additions today. A breakdown and close below 19,700 can intensify the selling pressure and take Nifty to 19,500 zones where its next support is placed. However, the Put-Call Ratio (PCR) for Nifty is 0.69, marginally below the 18th May level of 0.75 when the Index was at 18,130. Nifty has risen nearly 9% from 18th May until today,” he said.

Bank Nifty

Bank Nifty engulfed the previous day candle and closed at 45,923, down 152 points. The battle between the call and put writers at 46,000 Strike continued for the second day in a row, making it a key level for Bank Nifty. The downside support for Bank Nifty is placed at 45,500, he further said.

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