Indian equity indices opened Tuesday’s trading session in the green. The NSE Nifty 50 opened near 25,200, while the BSE Sensex opened 275 points higher at 82,475.
Similarly, Bank Nifty opened 300 points higher at 57,250 on the back of the healthy quarterly performance of large banking stocks.
On the other hand, the small and midcap stocks opened in the green. The Nifty Midcap rose 195 points to 59,662.
“Today’s outlook remains optimistic, with bullish sentiment bolstered by positive Wall Street gains and optimism surrounding the US-India trade deal. However, concerns persist over FII selling and pressures on Fed Chair Jerome Powell, raising questions about the Federal Reserve’s independence,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
“Technically, Nifty’s pivotal support is at 24,881, with resistance seen at 25,670. Focus today will be on Q1 earnings releases and developments in the US-India trade negotiations ahead of the August 01 deadline,” added Tapse.
A reversal intraday formation and a bullish candle near the 50-day SMA (simple moving average) indicate that a pullback formation is likely to continue in the near future, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
“For traders, 25,000 and 24,950 will act as key support areas. As long as the market is trading above 24,900, the pullback formation is likely to continue. On the upside, this bounce could extend to the 25,255 or 20-day SMA at 25,300. The uptrend could continue further, taking the market to 25,375. On the other hand, a drop below 24,950 would weaken the uptrend,” added Chouhan.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Zomato (Eternal), IndusInd Bank, Trent, Bajaj Finance, and ICICI Bank, among other stocks. On the flip side, the key laggards in the Nifty 50 pack included Eicher Motors, Bajaj Finserv, Tata Consumer Products, Reliance Industries, and Kotak Mahindra Bank.
Major movers on Tuesday
The stocks that remained under pressure included Zomato, ICICI Bank, HDFC Bank, Axis Bank, and Trent, which were the major movers in the morning trade.
Global markets
Asia-Pacific markets opened higher on Tuesday, taking cues from Wall Street’s record-setting rally. Overnight, the US stock markets kicked off the week with a mixed close, as the S&P 500 and Nasdaq Composite both notched new intraday and closing records on Monday.
All eyes on Q4 earnings
Investors are closely tracking a string of quarterly results scheduled for today. Major names like One 97 Communications Paytm, Cyient DLM, Colgate Palmolive, CreditAccess Grameen, Dixon Technologies, Mahindra & Mahindra Financial Services, JSW Infrastructure, KEI Industries, Blue Jet Healthcare, Dalmia Bharat, Kajaria Ceramics, Mahanagar Gas, Schloss Bangalore (Leela Hotels), VST Industries, Welspun Speciality Solutions, United Breweries, and Zee Entertainment Enterprises will announce their quarterly earnings scorecard in June 22.