Indian benchmark indices are expected to open marginally lower on Tuesday, weighed by concerns over US tariffs after Washington issued a notice that 50 per cent levies on Indian goods will take effect from Wednesday. Global cues continue to remain feeble. The rupee may remain under pressure.
Nifty futures on the NSE International Exchange traded 71.70 points, or 0.28 per cent, down at 24,918, hinting at a negative start for the domestic market on Tuesday. Asian stocks were trading lower in the early trade on Tuesday. Nikkei and KOSPI plunged more than a per cent each, while Hang Seng was trading marginally lower.
Wall Street stocks ended lower on Monday as investors parsed the outlook for the US. The S&P 500 declined 0.43 per cent to end the session at 6,439.32 points. The Nasdaq declined 0.22 per cent to 21,449.29 points, while the Dow Jones Industrial Average declined 0.77 per cent to 45,282.47 points.
The dollar and longer-dated US Treasuries slid on Tuesday after President Donald Trump announced he was firing a Federal Reserve governor, an unprecedented move that further undermines confidence in the Fed’s independence and US assets. The dollar index retreated 0.3 per cent to 98.187.
Oil prices edged down on Tuesday after surging as traders kept a close watch on developments in the Russia-Ukraine conflict for the potential impact on fuel supplies from the region. Brent crude futures fell 16 cents, or 0.23 per cent, to $68.64 per barrel, while West Texas Intermediate crude futures lost 16 cents, or 0.25 per cent, to $64.64.
Investor sentiment was buoyed by easing global rate concerns, with comments from the US Federal Reserve hinting at a possible rate cut next month, boosting risk appetite across emerging markets, said Ajit Mishra, SVP of Research at Religare Broking. “On the domestic front, steady institutional inflows and softening crude oil prices provided additional support,” it said.
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 2,466.24 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 3,176.69 crore on a net-net basis.
Nifty and Sensex outlook
Nifty formed inside a bar candlestick pattern, which signals a period of market pause after a down move. This pattern often indicates a period of low volatility that precedes a larger, more volatile price movement or breakout, said Nandish Shah, Deputy Vice President at HDFC Securities. “A decisive move above 25,084 would confirm the bullish trend reversal for Nifty. On the lower side, 20 and 50 DEMA, which coincides near 24847, would continue to serve as support in Nifty,” he said.
For the bulls, the 25,000/81,800 level will be the immediate breakout point. A successful breakout above this could push the market towards 25,150-25,200/82,300-82,500, said Shrikant Chouhan, Head Equity Research at Kotak Securities. On the other hand, 24,900-24,850/81,400-81,300 would act as key support zones for day trades,” he said.
Nifty Bank outlook
Nifty Bank formed a Doji candlestick pattern on the daily chart, signalling indecision among market participants, said Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities. “The support zone of 54,900–54,800 will be crucial. A sustained move below 54,800 could trigger further downside towards 54,400. The resistance zone of 55,300–55,400 will act as a key hurdle,”
For Nifty Bank, Immediate support is placed at 55,000-54,800- a region that aligns with the 100-day EMA and key Fibonacci retracement levels from the prior upward move, said Bajaj Broking. “A breach below 54,800 will open downside towards 54,000 levels. On the higher side immediate resistance is seen around 55,750 levels while key resistance is seen at 56,300 levels,” it said.
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