Indian equity benchmark indices are likely to open in the green territory, hints SGX Nifty.
The Nifty futures on the Singaporean exchange were trading 94 pts or 0.53% higher at 17,855.0 in the early morning session on Tuesday. On Monday, the BSE Sensex fell 334.98 pts or 0.55% to 60,506.90 and NSE Nifty 50 closed 89.45 pts or 0.50 pts lower at 17,764.60. In the sectoral indices, Bank Nifty fell 0.30%, Nifty Auto dropped 0.13%, Nifty IT dipped 0.61% and Nifty Metal tanked 2.20% while Nifty FMCG rose 0.56%, Nifty Media jumped 0.78% and Nifty PSU Bank advanced 0.25%. Among individual stocks, Vodafone Idea shares surged 25% to Rs 8.57 in the intraday trade, after the government permitted converting the telecom operator’s interest dues into equity.
Investors await RBI policy decision
‘A strong job market in the United States pushed the global market lower on rate hike fears, as it offers the Fed more leeway in enacting stricter policy measures. This was in contrast to the recent rally in the global indices on the expectation that the economy is in its last phase of policy tightening. RBI’s policy announcement on Wednesday will provide more colour on its future rate actions, which is expected to hike rate by 25bps.’ – Vinod Nair, Head of Research at Geojit Financial Services.
Bank Nifty undertone remains bullish
‘The BANK NIFTY index faced range-bound trading between 41000-42000 levels where the bulls and the bears were active. The index to resume the up move must surpass the level of 42000 on the upside on a closing basis. The undertone remains bullish and one should keep a buy-on-dip approach with immediate strong support at the 41500-41400 zone.’ – Kunal Shah, Senior Technical Analyst at LKP Securities.
Nifty trend may remain sideways
‘Nifty remained volatile before closing lower as Nifty ended about 90 points lower. On the daily chart, the index has been making lower tops, suggesting a waning bullishness. However, the bulls could protect the support of 17650. Going forward, the trend may remain sideways.
On the lower end, supports are placed at 17650/17400. On the higher end, 17950-18000 may act as a crucial resistance.’
