After a strong bounce back on Tuesday, domestic stock markets are expected open weak amid cautious sentiment. Despite the pull back, analysts expect the market may see selling at higher levels while value buying to emerge in select beaten down ‘quality’ stocks,

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: “ While the overall market set up continues to remain ‘Sell on rise’ – intermittent bouts of relief rally can’t be ruled out. Given the hawkish commentaries from Central banks and record high inflation, rate hike cycle is likely to continue over the next couple of months and would keep markets jittery.”

SGX NIfty at 15,570 (8 am) indicates a gap down opening of about 70 points, as Nifty futures on Tuesday closed at 15,638. Asian-Equity stocks are mixed in early deal on Wednesday. While equities across Japan, Australia and China eke out marginal gains, Korean and Taiwan stocks are down over one per cent. However, some analysts believe buying momentum to continue.

According to Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, “We expect that the fear of missing out (FOMO) can rule traders’ mindsets as bargain hunting and value buying could be the probable theme”.

Technically, if Nifty holds above its make-or-break supports at the 15363 mark then the interweek trading theme could shift to ‘Enthused Bulls and Arrested Bears’, he added.

According to Ajit Mishra, VP - Research, Religare Broking Ltd, the recent gains have certainly eased some pressure but “sustainability is the key”. Participants are keenly eyeing the US Fed chair’s speech for cues and the progress of the monsoon is also on the radar. A decisive move above 15,700 in Nifty can further fuel the rebound to the 16,000 zone else the decline would resume, he said and addig “Stocks, on the other hand, are offering opportunities on both sides so traders should plan accordingly.”