Comments
Domestic stock markets are expected to open firm on Tuesday, tracking positive global cues. SGX Nifty at 15,875 indicates a gap up opening of about 50 points for Nifty, as Nifty futures on Friday closed 15,836.
Equities across Asia Pacific and the US futures are also up in early deal on Tuesday amid reports that Biden administration could scrap some Trump-era tariffs on Chinese consumer goods, to tame inflation.
Strong domestic macros
According to analysts, domestic macroeconomic numbers remained positive helping market to consolidate.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: "Strong June auto sales number, improved GST collection, record property registration in Mumbai, hope of good monsoon and soft commodity price have supported domestic indices despite volatile and uncertain global environment."
Eye on global trends
Despite bounceback, analysts expect the global trends to drive local sentiment, especially FPIs behaviour.
Mitul Shah, Head Of Research at Reliance Securities, said: Global macroeconomic trends, movement in crude oil prices and FII activity will dictate the markets ahead of the start of quarterly earnings season.
Going forward, Siddhartha Khemka, said: markets will take cues from US Fed minutes of meeting (Wednesday). The June quarter earnings season will kick-start with TCS reporting its numbers on July 8 followed by Avenue Supermarts on July 9.
Technically positive bias
Technically too, the market has turned positive said analysts.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the positive sequence of higher tops and bottoms is intact and one may expect more upside to form a new higher top of the sequence in the next few sessions.
The short-term trend of Nifty continues to be positive with range movement. The market is now showing signs of witnessing a decisive upside breakout of the important resistance of 15,900 levels in the next 1-2 sessions. A sustainable upmove above 15,900-15,950 is expected to pull Nifty towards the next resistance of 16,300 in the short term. Immediate support is placed at 15,750.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.