Market to Open on a Flattish Note Amid Continued Foreign Selling

Domestic markets are anticipated to start on a flat note on Tuesday, with a slightly positive outlook owing to mixed signals from the global market. The Gift Nifty, indicating the Nifty's opening status, stands at 24,810, suggesting a modest increase. However, analysts warn that the ongoing selling pressure from foreign portfolio investors may keep the market under strain.

Market volatility is evident, as the India VIX rose by 5.56% to 13.7625, signaling increased fluctuations in market prices. This situation necessitates caution among traders. The open interest (OI) data highlights significant resistance levels on the call side at the strike prices of 24,900 and 25,000. Conversely, the put side shows concentration at 24,700 and 24,500, marking these as crucial support levels,” explained Hardik Matalia, a Derivative Analyst from Choice Broking.

Jatin Gedia, a Technical Research Analyst at Sharekhan by BNP Paribas, noted that the Nifty is facing selling pressure near the 25,000 mark, which aligns with a peak open interest concentration on the call side, indicating robust resistance. The market is also testing the 20-week average of 24,730, a level that held firm last week. “Currently, there is a standoff between the bulls and bears, contributing to increased volatility. We foresee a range-bound trading scenario between 24,500 and 25,200 from a short-term perspective,” Gedia added.

In the Asia-Pacific region, global stock markets have shown a downward trend in early trades on Tuesday, hinting at potential downward pressure on Indian stocks.

Moreover, Emkay Global Research hosted a discussion led by Ashok Malik, Partner and India Chair at The Asia Group, regarding India’s diplomatic challenges amid ongoing geopolitical tensions. Malik stated that despite the difficulties, there has yet to be a significant impact from global turmoil on India. Essential factors to monitor include the West Asia conflict's progress and the outcomes of the upcoming US Presidential election.

According to Ameya Ranadive, a Chartered Market Technician and Senior Technical Analyst at StoxBox, the prevailing market sentiment remains quite pessimistic.

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