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Indian stock markets are expected to open weak on Tuesday amid mixed global cues. The rising crude oil prices once again put pressure on equities, as analysts fear the commodity price will not soften anytime soon on prolonged Russian-Ukraine conflict.
Eyes on Fed
Foreign portfolio investors, who had turned positive on Wednesday and Thursday last week after months of selling, have again turned sellers on Monday. The exchanges provisional data revealed offloading ₹2,962 crore worth shares. Experts believe the market will witness volatility till clear picture emerges on geopolitical tension and US Fed.
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said: "The next big move on the market depends on Fed's meeting. Fed Chair Powell will make an appearance today, with traders looking for any clues on whether the central bank will deliver a 50bps rate hike in May 2022 and what plans it might have for running down its $8.9 trillion balance sheet."
According to Vinod Nair, Head Of Research at Geojit Financial Services, "With no significant improvement in the tensions between Russia & Ukraine and uncertainty in Gulf region, crude prices surged leading to a sell-off in the domestic market after the recent rally."
SGX Nifty ruling flat
SGX Nifty at 17,170 signals that Nifty is likely to open flat as Nifty futures on Monday closed at 17,158. However, most Asian stocks are up in early deal on Tuesday, with Japan and Australia rising over one per cent. Overnight, the US stocks though closed in the negative, they recovered most of the losses.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: "Technically, this indicate a formation of bearish engulfing type candle pattern at the highs (not a classical one). Normally, such bearish pattern formations after a reasonable upmoves could signal impending trend reversal on the downside."
However, the profit booking of Monday seems to have not damaged the recent uptrend of the market. There is a possibility of upside bounce in Nifty from the crucial 17,000-level support in the next 1-2 sessions, he added.
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