Domestic markets are likely to open on a flat note on Wednesday but global cues will drive the market during later part of the day. Global cues are mixed, as most Asia-Pacific equities swung between gains and losses in early deal on Wednesday. However, most of them recovered from day's low.
SGX Nifty at 16,150 indicates, a positive opening for domestic markets, as Nifty futures on Tuesday closed at 16,104.
Analysts expect another dull day for benchmark indices, ahead of F&O monthly settlement on the NSE on Thursday. With the settlement round the corner for May contracts, experts said the action would be stock specific, while the headline indices will see a narrow movement in initial hours..
Indian stocks are likely to see pain, as the US equities continue to exert pressure, they said. Overnight, the US stocks closed in red though off day's lows.
India VIX above 25
Equity Markets remained volatile on expected lines. Even India VIX surged by 9.6 per cent to 25.6 levels indicating continuing discomfort among investors, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
"Market would react to the minutes from the last US Federal Reserve meeting which would be released on Wednesday, and could give insights into their future course of action. We expect volatility to continue this week given uncertain environment as well as monthly F&O expiry on Thursday," he further said.
Focus on Bank Nifty
According to Ruchit Jain, Lead Research, 5paisa.com, the IT space continued its correction which validates our recent view on extension of the corrective phase in this sector. The Bank Nifty has shown relative strength in last couple of sessions but it has not yet surpassed its crucial hurdle. "So in case the Nifty resumes its correction in the near term, then the banking space too will follow the path," he added.
Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities, said: "Tuesday’s fall was also accompanied with a negative MA crossover as the 20 period MA moved below the 50 period MA. This indicates weakness. Traders will now need to watch if the Nifty can hold above the immediate support of 16078. Else, we could see a further correction."