The stock market is expected to open its doors, with the consolidation phase expected to continue


Indian stock markets are expected to continue consolidating on Tuesday as global equities show positive signals. US stocks closed mixed on Monday, with the technology-focused S&P 500 and Nasdaq closing higher while the Dow fell slightly.

Despite the Indian rupee’s slight decline against the dollar on Monday, as a sharp rise in US Treasury yields and crude oil prices weighed on sentiment for the Indian currency, equity markets remain firm.

SGX Nifty at 18,567 indicates a 70-point open spread for Nifty futures, which closed Monday at 18,795. Most Asian markets are up between 0.1 percent and 0.4 percent.

Analysts said while India Inc’s second quarter financial performance has been good so far, the current valuation of the Indian benchmark is high and may soon see a correction. Indian markets will see equity specific action with institutions adopting a sector rotation strategy.

“National stocks look good for the day. Notably, earnings for the September quarter have been quite encouraging so far as most companies have managed to beat consensus estimates, which is certainly heartwarming. Notably, the sharp contraction of the CPI to 4.35% for September despite high oil prices and expectations of low inflation in October 21 could help RBI to continue its political support to maintain the current growth momentum ”, a said Binod Modi, head of strategy at Reliance. Securities.

According to Deepak Jasani, head of retail research, HDFC Securities, “Nifty increased very high volumes on Monday. The expected decline ratio closed positively towards the end of the day, but was below morning levels. Nifty is now overbought on the daily charts. Tuesday is the eighth day of this uptrend and eight is also a Fibonacci number that could indicate a short term trend change. “

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, “We believe that due to the overbought formation, the bulls may take a cautious stance near the resistance level of 18. 600 to 18 650. “

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