Domestic markets are expected to open positively on Tuesday, as major equities across Asia-Pacific are up in early deal even as the US stocks ended weak overnight.

Investors globally fretted about the economic fallout from fresh Covid-19 restrictions in China, with resulting risk aversion benefiting bonds and the dollar and about the likelihood of future monetary tightening and the impact on future economic growth, said Deepak Jasani, Head of Retail Research, HDFC Securities.

SGX Nifty at 18,250 indicates a positive opening of about 60 points. Among the Asia-Pacific equities in Japan, Singapore, Taiwan, Thailand and Australia are up even as Chinese and Korean stocks are down.

Analysts expect stock-specific action to continue in the Indian markets with consolidation phase going on.

Brokerage Choice International said that market may go sideways after a sharp rise and that may be considered as healthy in the long run.

As monthtly derivative contracts are set to expire on Thursday, analysts expect focus will be on rollovers.

Ruchit Jain, Lead Research,, said, With monthly expiry nearing, it would be crucial to watch whether traders rollover their long positions to the next series going ahead and whether the Nifty index holds on to this crucial support.

“Till this support is intact, it could be seen as a time-wise correction within a short-term uptrend. But the market breadth is not improving as some of the sectors, including the midcap index have shown divergence and a lackluster movement. For this divergence to end, the midcap space and the broader markets should witness buying interest and if that does not happen, then it could be a setback for the benchmark as well,” he added.

Open interest data indicates, highest OI witnessed at 18,300 followed by 18,400 strike prices and at 18,000 on the Put side, said Choice International. “Conversely Bank Nifty may continue its ongoing rally and may scale to new highs in the near to medium-term,” it further added.