Flat opening seen for Nifty, Sensex amid strong global cues

The bullish momentum in the domestic markets is likely to continue thanks to strong global cues. Post market hours in the US, high-profile companies, including Tesla Inc and Visa International, came out with better-than-expected results that fuelled a strong rally in equity benchmarks across the Asia-Pacific region.

However, Gift Nifty at 22,450 signals a flat opening.

According to analysts, as April month contracts on the NSE in the derivative segment expire tomorrow, the market will remain volatile. Stock-specific action will continue due to result season.

Ruchit Jain, Lead Research, 5paisa.com, cautioned investors that FII’s derivatives statistics remains bearish as they have about 65 per cent of the positions in the index futures segment on the short side and have not covered these positions in this pullback move.

Hence, it is advisable to book some profits on trading long positions and take some money off the table, he advised.

India VIX declines sharply by 20 per cent, which seems due mainly to lower volatility expectations as tensions related to global geopolitical tensions have eased, some of the major index heavyweights have declared their results, and markets have probably started factoring in the election results, he further said, adding that a falling VIX is usually not favouable for options buyers and hence, such traders should be cautious on taking directional bets.

According to Mandar Bhojane, Research Analyst, Choice Broking, analysing Tuesday’s open Interest (OI) data, the highest OI on the call side was observed at the 22,500, followed by the 22,600 strike prices. Conversely, on the put side, the highest OI was recorded at the 22,100 strike price.

Market participants showed more interest in broader markets, as Mid and Small Caps surged over 1%, outperforming the Frontline Index, he added.