Indian markets are likely to open on a bearish note on Tuesday amid a negative global trend. Today, with the settlement at NSE for monthly contracts, analysts expect volatility at the individual stock level.
Ponmudi R, CEO of Enrich Money, said Indian equity markets remain in a cautious consolidation-to-mildly bearish phase, driven by ongoing profit booking, expiry-related positioning, and thin year-end liquidity. “Intraday volatility is expected to remain elevated—particularly in the latter half of the session—amid monthly F&O expiry and rollover activity, while mixed global cues and selective domestic buying continue to keep overall sentiment guarded,” he cautioned investors.
Gift Nifty at 25,930 indicates a gap-down opening of about 100 points for Nifty. Lack of buying, a weak global market, and heavy selling by foreign portfolio investors will keep the market under pressure, analysts said. Tracking overnight weak signals from US markets, stocks across the Asia-Pacific region are down in early deals on Tuesday.
According to them, marketsmen will discount even the strong IIP data. With a boost in the manufacturing and mining sectors, factory output, measured by the Index of Industrial Production (IIP), grew by 6.7 per cent in November, as against 0.4 per cent in October, according to government data released on Monday. The latest reading is the highest in 25 months. Experts feel that if this momentum continues for a few more months, only recovery can be established.
According to Rajeev Sharan, Head of Criteria, Model Development, and Research – Brickwork Ratings. India’s industrial sector showed strong resilience in November 2025, with the Index of Industrial Production rising 6.7% year on year, driven by an 8% surge in manufacturing and a 5.4% rebound in mining. “This broad‑based momentum signals healthy demand across capital goods and consumer durables. This strength underpins Q3 FY2026 GDP growth, keeping it on track with the full‑year forecast of 7.3%. From a credit rating perspective, the improvement strengthens confidence in industrial borrowers’ cash flows and supports stable outlooks for manufacturing and infrastructure‑linked sectors,” he said.
Meanwhile, F&O trade continues to send a cautious mood.
Derivatives signals
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said From a derivatives perspective, the data reflects a cautious and guarded market stance. Call writers have added fresh positions at at-the-money and nearby strikes, reinforcing overhead supply and limiting upside attempts. Notably, a significant accumulation of nearly 2.30 crore call contracts at the 26,000 strike has firmly established this level as an immediate resistance zone. On the other hand, put writers have reduced exposure and rolled positions to lower strikes, signalling expectations of continued consolidation rather than an immediate breakout.
“The addition of around 1.13 crore put contracts at the 25,900 strike has created a strong support cushion on declines. Put-Call Ratio (PCR) has slipped to 0.56, reflecting cautious sentiment and suggesting that sellers continue to dominate at higher levels,” he said.