Domestic markets are poised to open flat to positive on Tuesday, buoyed by optimistic global cues. Market analysts believe that while the market has absorbed most of the negative news, it is eagerly awaiting positive triggers to push higher. The ongoing uncertainty stemming from the US will be managed by market participants, with expectations that the aggressive selling by foreign portfolio investors will soon taper off, bringing much-needed stability to the market.
The Gift Nifty indicating a potential 170-point gain for Nifty suggests a positive start. Though benchmark indices are currently in a consolidation phase, small and mid-cap stocks are facing selling pressure, according to analysts.
Aditya Gaggar, Director of Progressive Shares, noted that following a strong opening, the market witnessed a range-bound session ultimately closing at 22,508.75 with gains of 111.55 points. The Pharma and Auto sectors performed well, while Media and Realty sectors lagged. Mid and Smallcaps mirrored the Frontline Index’s performance. The technical analysis indicated a bullish trend continuation with the Nifty50 forming a bullish marubozu candlestick pattern on the daily chart. Gaggar suggested that a breakthrough above 22,620 or below 22,320 could dictate the market’s direction.
Satish Chandra Aluri from Lemonn Markets Desk highlighted that the market is awaiting clues on central bank policies this week, particularly the US Fed meeting. Attention will be on the US Fed’s projections regarding rate cuts, growth outlook, and inflation expectations, alongside Fed chair Powell’s press conference.
Technically, the Nifty 50 closed above the 22,500 level, but the key resistance lies around 22,600-22,700 levels. Bank Nifty also saw gains with the support level unchanged around 48,000 levels.
Analysts also noted that a slight uptick in the wholesale price index is unlikely to dent sentiment. Rajani Sinha, Chief Economist at CareEdge Ratings, pointed out that the WPI inflation rose to 2.4% in February 2025 from 2.3% in January. Sinha attributed the increase to a rise in inflation within manufactured goods offsetting the decline in primary articles’ inflation. She highlighted the importance of monitoring geopolitical developments and global trade uncertainties that could impact global commodity markets and supply chains.
Global stocks are reflecting positive momentum, with Asian stocks registering gains between 0.3% and 2% in early trading on Tuesday following a strong close in US markets overnight.
Overall, the market outlook remains cautiously optimistic with expectations of continued consolidation and potential positive triggers on the horizon.
