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Indian markets are likely to maintain bullish momentum on Tuesday amid firm global cues. SGX Nifty at 17,250 indicates that Nifty is likely to see a gap-up opening of about 150 points, as Nifty December futures closed at 17,103.40 on the NSE. However, volumes are likely to remain low due to the holiday season.
Asia-Pacific stock markets are up in early deals on Tuesday, led by Nikkei (Up 1.11 per cent), Australia's ASX (0.48 per cent) and Taiwan (0.66 per cent). Korea's Kospi, Hong Kong and Chinese benchmarks are trading flat but in the green.
Overnight, the US stocks climbed. Although travel-related stocks came under pressure due to Omicron fears, the S&P 500 index hit a record high on Monday. While the Dow Jones Industrial Average closed 0.98 per cent higher, the S&P 500 and tech-heavy Nasdaq edged up 1.39 per cent and 1.38 per cent, respectively.
According to analysts, markets making a positive turn on Monday are a good sign for the coming days. Most of the sectors closed in green was a better sign.
Rahul Sharma, co-owner - Equity 99, said: Due to the rising Covid and Omricon cases, we can see a correction anytime in the market. We could see liquidity in the market after a continuous IPO listing this week. Investors are advised to maintain buy on dips strategy."
Slowdown in FPI selling
FII selling has reduced sharply over the last few days due to the festive holidays, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd. "Markets are expected to remain sideways until the end of the year due to lack of triggers. Q3 results season and build up to the upcoming budget session would be key events that the market would be looking for in Jan 2022," he added.
Bank index under pressure
According to analysts, banks are under pressure despite a broad-based rally on Monday. They expect the trend to continue for some time.
Ruchit Jain, Lead Research, 5paisa.com, said that in this recent corrective phase, the banking space has been an underperformer and has been a key sector to lower the markets. "Now, if we look at the daily charts, it seems that this index is in the last leg of this corrective phase and whether this index has completed this correction at today’s low with a truncated wave or it will for another low to complete the pattern needs to be seen," he added.
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