Domestic markets are likely to open on a flat note with a positive bias on Tuesday. Amid positive global cues, GIFT Nifty at 19488 indicates another indecisive day at the cards. Analysts expect consolidation to continue, even as the focus will be on corporate results. TCS and HCL Technologies will announce their Q1 numbers on Wednesday.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said after a one-way move, the market is witnessing some consolidation and profit booking at higher levels amid weak global cues. Investor sentiments were dampened after the latest data suggested China is on the brink of deflation. “With Q1 result season starting this week, we expect stock-specific action in the market, starting with the technology sector. Also, monsoon-related stocks are likely to remain in momentum after rainfall deficit of 10 per cent turned into surplus of 2 per cent within 8 days,” he added.

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According to analysts, domestic macros remain strong and stable, foreign portfolio investments to continue.

India is preferred investment destination: Invesco

Direct tax collections have picked up pace over the past month, with net inflows rising 15.9 per cent to ₹4.75 lakh crore by July 9, helping the government meet more than 26 per cent of its target for this year. Gross direct taxes, which had risen 12.7 per cent as of June 17, had grown 14.65 per cent to ₹5.17 lakh crore by July 9, as per the Income Tax Department. The 2023-24 budget has pegged direct tax collection at a little over ₹18.23 lakh crore, a 9.75 per cent higher than ₹16.61 lakh crore mopped up last fiscal.

According to a study by Invesco Global Sovereign Asset Management, India has overtaken China to become the most attractive emerging market for invest in. The report included views from 142 chief investment officers, heads of asset classes along with senior portfolio strategists from 85 sovereign wealth funds and 57 central banks.

Vikas Jain, Senior Research Analyst at Reliance Securities, said investors await earnings results while the 50th GST Council meet will take off on July 11. Budgetary support for hilly states and cess on multi-utility vehicles are likely to be taken up by the high-powered Council. Further, the economy is getting a capex push from India Inc as companies get down to pumping up spend amid rising demand. “With much of the ₹2,000 notes back in the system and the government getting into spending overdrive, surplus liquidity has shot past the ₹2 lakh crore mark which provides a big internal support for the central bank.”

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Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, “After the sharp weakness of Friday, Nifty failing to show any follow-through weakness in subsequent session could be a sigh of relief for bulls. There is a possibility of another attempt to scale towards the upper range of 19500 levels in the short term. However, any weakness below the immediate support of 19300 could lead Nifty towards the next crucial support of 19200-19000 levels in the near term. Fresh buying could only emerge on a decisive upside breakout above 19500 levels.