The Indian equity market is likely to open on a cautiously optimistic note on Tuesday following similar moves in Asian peers amid marginal gains in the US markets ahead of the key inflation data.
Trends on GIFT Nifty also indicate a mildly positive start for the broader index. The Gift Nifty was trading 31 points, or 0.16%, higher at around 19,487.50 level.
The domestic equity benchmarks the Sensex and the Nifty ended Monday with mild gains, while global sentiment was cautious ahead of key macro data and corporate earnings in the week ahead.
Also Read: Gift Nifty, Asian markets in the green amid gains on Wall Street: Check out key global cues for Indian stock market
“After a one-way move, the market is witnessing some consolidation and profit booking at higher levels amid weak global cues. Investor sentiments were dampened after the latest data suggested China is on the brink of deflation. With Q1 result season starting this week, we expect stock-specific action in the market, starting with technology sector,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Meanwhile, Nifty seems to have stuck in a range and has been consolidating in the 19,300-19,500 trading range. Analysts believe that a breakout from this range on either side would decide the direction for the market.
Also Read: Day trading guide for today: Five stocks to buy or sell on Tuesday — July 11
Nifty
The Nifty experienced a range-bound trading pattern on Monday and ended the day 24.10 points higher at 19,355.90.
“Despite this, the bulls managed to defend the support level of 19,300, preventing a significant decline. However, the hourly RSI indicated a bearish crossover. This suggests a potential shift towards a downward trend. If the support level of 19,300 is breached, a correction in the market may be expected,” said Rupak De, Senior Technical analyst at LKP Securities.
On the upside, he believes resistance levels for the Nifty index are anticipated around 19,450-19,500.
Bank Nifty
The Bank Nifty index fell 64 points to close at 44,861 after rangebound session on Monday.
“The Bank Nifty index has been primarily influenced by bearish sentiment as selling pressure persists from higher levels. The dominance of bears indicates a cautious market environment. The immediate resistance for the index is placed at 45,200. If the index manages to break above this level, it could potentially shift the control back to the bulls,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
On the other hand, the index finds immediate support at 44,800. If this support level is breached, it may lead to further downside movement towards the 44,500-44,400 zone.
In such a market scenario, Shah believes, it is advisable for traders to utilize opportunities presented by both sides of the market.
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