Domestic markets are expected to open on flatfish to positive note on Tuesday, thanks to positive global cues. According to analysts, the market has digested most of the negative news but awaits positive cues to go up, it said. Uncertainty emanating from the US will be handled by market participants, they said, adding that the aggressive selling by foreign portfolio investors may soon end. This will give much-needed stability to the market, they added.
Gift Nifty at 22,747 indicates a nearly 170-point gain for Nifty. Though benchmarks are in consolidation mode, small and mid (SMID) cap stocks face selling pressure, said analysts.
Aditya Gaggar, Director of Progressive Shares, said: The market experienced a rangebound session after a strong opening, with the Index ultimately closing at 22,508.75 with gains of 111.55 points. The Pharma and Auto sectors were the top performers, while Media and Realty lagged. Mid and Smallcaps followed a similar pattern to the Frontline Index. The Nifty50 formed a bullish marubozu candlestick pattern on the daily chart, indicating a continuation of the current trend. However, the upside appears to be capped at 22,620, while the downside is protected at 22,320. A breakout beyond either of these levels would provide a directional trend for the market.
Satish Chandra Aluri, Lemonn Markets Desk, said Markets will await this week for clues on central bank thinking amid rising uncertainty with a particular focus on the US Fed meeting. “Although consensus expects no change, the focus will be on US Fed projections on future rate cuts, growth and inflation expectations along with Fed chair Powell’s press conference,” he added.
Technically, the Nifty 50 closed above the 22500 level, but it remains to be seen if bullish momentum continues with key resistance around the 22600-22700 levels. Bank Nifty posted gains today with no change in support level on downside around the 48000 levels, he further said.
Meanwhile, analysts said a marginal uptick in the wholesale price index will not hurt sentiment. “The WPI inflation increased slightly to 2.4% in February 2025, up from 2.3% in January.
Rajani Sinha, Chief Economist, CareEdge Ratings on WPI data, said: the increase in WPI inflation occurred after three consecutive months of decline. While inflation in primary articles moderated significantly, primarily due to a decline in food prices, this was offset by a rise in inflation within manufactured goods. Additionally, the deflation in the fuel and power category narrowed. “Going ahead, it is crucial to monitor geopolitical developments and global trade uncertainties closely, as these could significantly influence global commodity markets and supply chains. Recent depreciation of rupee against USD raises the risk of imported inflation. Despite the rise in global commodity prices, these factors are unlikely to pose a significant threat, as economic growth in China remains subdued. We expect the WPI inflation to remain largely benign over the next couple of months averaging 2.3% in Q4 FY25. For FY26, the WPI inflation is projected to average around 3%,” she added.
Global stocks are sending positive signals. Asian stocks were up between 0.3 per cent and 2 per cent in the early hours of Tuesday, thanks to the overnight strong close in the US markets.
