Sensex, Nifty to open weak, signals Gift trade

trade sync. A uniform VWAP will enhance interoperability between the two main exchanges, particularly during troubleshooting or disruptions at either exchange PTI
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PTI

Domestic markets are likely to remain volatile on Tuesday amid mixed corporate results. Gift Nifty at 24,580 signals a downward bias of about 80 points. Analysts expect the market to remain in consolidation phase, though stocks may witness profit-booking at higher levels.

Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said  Nifty on Monday witnessed spurts of buying, but these were met with swift selling at higher levels, reflecting a pattern of intraday fake-outs and profit-booking. “The inability to hold onto gap-up gains indicates the presence of aggressive bears at elevated price bands. This ongoing tug-of-war suggests the market is in a time-wise consolidation phase, with a sideways undertone that could persist unless a clear breakout occurs,” he said.

The continuous buying by foreign portfolio investors helps the market remain stable, analysts said. “The recent rally has been fuelled largely by renewed interest from foreign investors. Benchmark indices have now gained in 12 of the last 16 sessions, with both Sensex and Nifty 50 rising over 10 per cent during this period. In the last 11 trading sessions alone, FIIs have pumped in more than ₹38,300 crore, as per NSDL data, providing a solid foundation for the market’s upward momentum,” said Mandar Bhojane , Equity Research Analys, Choice Broking.

According to Dhupesh Dhameja, derivatives data paints a picture of cautious optimism. The Put-Call Ratio (PCR) has risen from 0.68 to 0.81, suggesting a tilt toward defensive hedging strategies. Max Pain remains static at 24,400, pointing to a market in equilibrium, awaiting a break-out cue. However, India VIX edged up by 0.44 per cent to 18.33, reflecting a marginal uptick in implied volatility. “The elevated VIX, holding well above the 15-mark, underscores the prevailing uncertainty due to global geopolitical tensions and macroeconomic headwinds. This environment warrants a tactical and risk-managed approach as sudden intraday volatility remains a real possibility,” he cautioned.

Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd said: “We expect the market to continue its consolidation with a positive bias, while tracking global cues and developments on the geopolitical front.” 

Result reactions would drive sector/ stock-specific movements with companies such as Godrej Consumer, BSE, HPCL, CG Power,Polycab, amongst others, announcing results today, he said.

Published on May 6, 2025

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