Domestic markets are expected to open on a flat note on Tuesday as analysts expect profit taking at higher levels. The focus has now shifted to global sentiment. Investors will remain cautious ahead of FED chair testimony and ECB policy later this week.

Gift Nifty at 22,480 indicates a flat-to-negative opening for domestic markets, as Nifty March futures on Monday closed at 22.500.95.

“We expect stock specific action to continue based on the news flow,” said SBI Securities in a note.

“Going ahead, the index is likely to continue its northward journey for the coming week. On the upside, it is likely to test the level of 22640, followed by 22750 on the upside in the short term. While, on the downside, previous Swing high zone of 22125-22140 is likely to act as an immediate support followed by the 20-day EMA zone of 22040 level,” it added.

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“We are of the view that the range bound texture is likely to continue in the near future. Hence, buying on intraday correction and sell on rallies would be the ideal strategy for the day traders,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said, “Given the positive domestic sentiments, we expect market momentum to continue over the next few days with Nifty likely to move towards 22500 zones. However, the broader market could remain under pressure given the profit booking and adverse advance-decline ratio. Hence we suggest traders be very selective in mid/small caps.

Global stocks around Asia are mixed following weak closing at the US overnight.

Mandar Bhojane, Research Analyst, Choice Broking, said,” “Upon scrutinising the Open Interest (OI) data, the call side revealed the highest OI at 22,500, followed by the 22,800 strike prices. On the put side, the maximum OI was observed at the 22,200 strike price.

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