Indian stock markets are likely open positive on Monday after a long weekend. SGX Nifty at 17,400 signals a gain of about 80 points as Nifty futures on Thursday closed at 17,322. Asia-Pacific stocks are also in positive zone in early deal on Monday as markets started discounting the headwinds such as Fed rate hike and Russia-Ukraine conflict.

FPIs turn buyers

Marketmen are rejoicing the return of FPIs as buyers. In the last two days, foreign portfolio investors (FPIs) have turned net buyers and especially on Thursday by over ₹2,800 crore.

If the current mood of FPIs sustains, experts believe, the worst is over for Indian markets.

According to Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services, "While the large cap had been participating in the recent rally, we are now witnessing strong interest in the broader market as well. Also some of the underperforming sectors like insurance, real estate, durables, building materials, beverages, chemicals, etc were in action, indicating buying in broader market. We expect the current momentum in market to continue this week as well with broad based participation," he added.

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As fears recede, the NSE's volatility index too softened by 23 points.

While the Fed's forecasts for six more rises this year remain aggressive, economists believe the markets are rallying because they were oversold, and short covering has driven indices higher, said Mohit Nigam, Head - PMS, Hem Securities

Equities across Asia-Pacific region are up in early deal on Monday, as US stocks closed last week on positive note.

Signs of progress in peace talks between Russia and Ukraine, China’s focus on economic stability and softening of oil prices boosted the investors’ sentiments, added Khemka.

Technically well placed

Technically also the market has been better placed, said analysts.

The Nifty has completed the corrective phase and has resumed its broader uptrend. Nifty has now retraced 61.8 per cent of the recent corrective phase from 18350 to 15760 and has ended around that retracement level which is around 17330, said Ruchit Jain, Lead Research, 5paisa.com.

The follow upmove will be important as if the index surpasses this hurdle then it has potential to extend this up towards 17500 and 17800, he said.

"On the flipside, if there’s any correction from this 61.8 per cent retracement level, then we do not expect any significant downside hereon. The previous resistance zone of 17000-16800 will now turn into support and any decline towards this would be a good buying opportunity," Jain said adding that India VIX, which rose sharply earlier, cooled-off during last week, which is a positive sign".

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