Indian equity benchmark indices are anticipated to open higher on Tuesday, continuing a four-session winning streak. This positive sentiment is largely driven by optimistic pre-earnings corporate updates and a noticeable return of foreign investors to the market.
GIFT Nifty Futures on the NSE International Exchange were up by 60.10 points, or 0.25 percent, trading at 24,543, indicating a strong start for the domestic market.
Key Market Drivers and Global Cues
The current rally in Indian markets is supported by several factors, including Brent crude prices holding steady near $72 a barrel, accelerated monsoon progress, and early indications that Foreign Portfolio Investors (FPIs) are shifting from sellers to buyers after an extended period of outflows. US stocks closed sharply higher on Monday, fueled by investor interest in AI-related companies expected to deliver robust second-quarter earnings. The S&P 500 climbed 0.72%, Nasdaq gained 1.12%, and the Dow Jones Industrial Average rose 0.29%.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that Indian equity markets are likely to gradually move higher, bolstered by stable crude oil prices, a resilient rupee, and strong pre-quarterly business updates. He added, "With attractive valuations and resilient domestic macro indicators supporting the market, stock- and sector-specific action is likely to increase as the earnings season unfolds."
In contrast, Asian stocks drifted lower on Tuesday, with KOSPI crashing over 6% and Nikkei dropping more than 1%, while Hang Seng also edged lower.
FII and DII Activity
Provisional data from NSE revealed that FPIs turned net buyers of domestic stocks, investing Rs 3,791.42 crore on Tuesday. Simultaneously, Domestic Institutional Investors (DIIs) also became net buyers, injecting Rs 243.03 crore into Indian equities.
Nifty50 and Sensex Technical Outlook
Both Nifty50 and Sensex have formed bullish candles on daily charts and are maintaining a higher high, higher low series on intraday charts, signaling further upward momentum.
- Nifty50: Shrikant Chouhan, Head of Equity Research at Kotak Securities, identified 24,350 as a crucial level for day traders. Above this, positive momentum could push Nifty towards 24,500–24,600. A fall below 24,350 might trigger a correction to 24,200–24,250. Rupak De, Senior Technical Analyst at LKP Securities, sees Nifty extending gains towards 24,800, with immediate support at 24,300.
- Sensex: Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, noted a strong bullish candlestick, suggesting sustained buying. The 77,600–77,800 zone is immediate support, with potential to rally towards 78,900–79,000. A decisive breach below 77,600 could lead to profit booking.
Nifty Bank Outlook
Nifty Bank also formed bullish candles, indicating continued buying interest despite some profit booking. It trades comfortably above its short-term and long-term moving averages, reflecting a strong underlying bullish structure.
- SBI Securities (Sudeep Shah): The 58,700–58,800 zone is a key resistance. A sustained breakout above 58,800 could lead to a move towards 59,400, and potentially the psychologically important 60,000 mark.
- Bajaj Broking Research: A decisive move above the recent swing high of 58,700 would strengthen the bullish setup, paving the way for an advance towards 59,200 and 60,000. The 57,000–57,500 zone acts as crucial short-term support.
Global Commodity and Currency Watch
Oil prices edged higher, with US crude rising 0.54% to $68.92 a barrel and Brent crude up 0.49% to $72.34 per barrel. In commodity markets, gold lost 0.49% to $4,143.59 an ounce, and silver fell almost 1% to $61.47 an ounce. The US dollar index rose 0.03% to 100.89 as expectations of Fed rate hikes receded.
Ajit Mishra, SVP of Research at Religare Broking, highlighted that continued softness in Brent crude, easing concerns over global interest rates, and improving monsoon progress are boosting investor confidence. He suggests a "buy-on-dips" strategy, focusing on stronger stocks with disciplined risk management.