Indian equity indices, the Sensex and Nifty, are likely to open flat but on a positive note, thanks to upbeat global cues. However, according to analysts, the market will remain volatile as foreign portfolio investors step up their selling on every rise.

Gift Nifty at 21757 indicates a flat opening against Nifty January futures’ 21,604 and February futures value of 21,765.

The focus is now shifted to corporate results and the upcoming Budget (or vote on accounts), said analysts, adding that stock-specific action will continue. Volume will remain low this week due to holidays, said analysts.

Meanwhile, Asian stocks are up moderately in the early deal on Tuesday, tracking the US stocks, which closed on a firm note overnight.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: Niche sectors like railway and power utilities saw huge buying interest. However, profit booking was seen in the IT sector after a strong run-up over the last few sessions following better-than-expected results by the IT heavyweight.

This week is a truncated week following the holiday on Monday on account of pran pratishtha of Ram temple in Ayodhya and on Friday on account of Republic Day, he said and added, “Traders should stay light as earnings season would get in full swing leading to stock specific action largely. Moreover, the interest rate decision of BoJ and ECB is due next week along with US GDP and PMI data, which would have an influence on the global rate cut trajectory.”

Rupak De, Senior Technical Analyst, LKP Securities, said: Only a decisive breakout on either side could initiate a directional move. A significant decline below 21500 might trigger a correction towards 21300 and below. Conversely, a robust breakout above 21700 is needed for a resumption of the uptrend.”

The BankNifty index displayed resilience by forming a higher low on the daily chart while maintaining the immediate support zone of 45700-45600, he further said. “To resume the uptrend, the index needs to overcome the immediate resistance at 46300, a breakthrough that could trigger short-covering, propelling it towards 46500/46800 levels. However, a close below the crucial support of 45600 might instigate a substantial downside correction towards 44000, he added.

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