Indian stock markets are anticipated to open flat to positive on Tuesday, reflecting the movements of Asian peers. Following a strong recovery on Monday, analysts are expecting additional consolidation in the markets. The Gift Nifty is indicating a cautious mood with a signal at 23,690.
In the previous session, institutional activity provided some support. Both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) remained net buyers, which helped stabilize market sentiment after recent sharp declines. “Sustaining these institutional inflows will be critical for bulls if markets aim to build further upside momentum,” stated Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth.
Global cues are improving as easing geopolitical tensions bolster early market sentiment following a period of volatility. Asian markets opened broadly higher as crude oil prices have slightly diminished due to reports suggesting that U.S. President Donald Trump may postpone a potential military strike on Iran. This temporary easing of tensions has alleviated immediate fears regarding global oil supply disruptions, providing relief to risk assets in the region.
Despite the positive opening setup, today’s session is expected to be highly volatile as markets approach the weekly Nifty expiry. The India VIX remains elevated near 19.8, suggesting that option premiums are expensive and that fear and uncertainty still linger beneath improving market sentiment.
Investors are expected to remain attentive to geopolitical developments, along with trends in crude oil, currency, and institutional flow dynamics, which will continue to drive Indian equities in the near term.
From a derivatives perspective, Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, noted a consolidation phase indicated by a Put-Call Ratio (PCR) near 1.35, reflecting substantial put writing activity and improving support at lower levels. Option data reveals aggressive put writing around the 23,500–23,300 strikes, establishing a solid support base, while call writers are active near the 23,800–24,000 levels, capping immediate upward momentum.
“The overall setup indicates the market is entering a consolidation phase with stock-specific action dominating the broader trend. As long as the index remains above 23,400, a buy-on-dips strategy could be favorable for gradual recovery towards the 23,800–24,000 levels. Conversely, a decisive breakdown below 23,300 could invalidate the current support formation theory and trigger renewed weakness towards 23,100–23,000 levels,” Dhameja added.
Published on May 19, 2026.
