Indian markets are likely to open on flat-to-positive note Tuesday but analysts expect another volatile session due to settlement of NSE monthly and weekly derivative contracts. With the geopolitical tension continues to giving mixed signals, experts believe domestic sentiment will drive market movement in the short-term.
Gift Nifty at 24,005 signals flattish opening.
Indian equity markets are expected to trade with a cautious bias as investors closely monitor renewed geopolitical tensions ahead of the next round of U.S.–Iran negotiations, said Ponmudi R, CEO of Enrich Money. Crude oil prices continue to hold on to their recent gains, with Brent trading in the $70–71 per barrel range following the latest military exchanges between the United States and Iran over the weekend.
“Investor attention is now firmly focused on the upcoming negotiations in Doha, with hopes that diplomatic progress will help ease regional tensions. However, any escalation or disruption to shipping through the Strait of Hormuz could reignite concerns over energy supplies, inflation and global risk sentiment, making developments in the region the key market driver in the sessions ahead,” he said.
On the domestic front, concerns persist after India’s summer crop sowing trailed last year’s pace due to a delayed start to the monsoon season. The slower planting progress has raised questions over agricultural output and rural demand, although the outlook will largely depend on the pace and distribution of rainfall in the coming weeks, he cautioned.
The volatility index, India VIX, rose 4.29% to close at 13.61, indicating a modest increase in market volatility and cautious sentiment among participants. “In the derivatives segment, notable call writing was observed at the 24,000 and 24,100 strikes, while put writing was concentrated at the 24,000 and 23,800 levels, suggesting immediate resistance around the 24,000–24,100 zone while support remains near the lower strike,” said Sachin Gupta, VP- Technical Research at Choice Broking.
Meanwhile,, equities across Asia Pacific are up in early deal on Tuesday.