Benchmark stock market indices are expected to open higher on Tuesday, tracking positive sentiment in Asian markets. Early trends from GIFT Nifty indicate that the Nifty 50 may attempt to break past its immediate resistance levels.
“Nifty reclaimed the 22,500 mark, signaling a bullish shift driven by cooling inflation in the US and India, which may lead to rate cuts, and China’s efforts to boost consumption,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
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Despite foreign institutional investors selling shares worth Rs 25,717 crore in March, he remained optimistic, setting targets of 23,550 for Nifty and 49,750 for Bank Nifty.
Global cues remain supportive, with optimism over China’s economic recovery bolstering market sentiment. Asian equities were trading higher in early trade, and US stocks closed in positive territory despite weaker retail sales and factory output data.
Back home, key stocks are likely to be in focus. Ola Electric fell 7% amid insolvency concerns, while LTI Mindtree declined 2.4% after Citigroup reduced contractor hiring. Tata Motors and Maruti Suzuki are planning price hikes in April, citing higher input costs. “Buy Voltas (CMP 1458) with targets of 1477/1503 and an aggressive target of 1601, supported by strong charts and solid support at 1401,” Tapse added.
Aditya Gaggar, Director at Progressive Shares, noted that Nifty formed a bullish marubozu candlestick pattern on the daily chart, indicating a continuation of the current trend. “The index faces resistance at 22,620, while support is seen at 22,320. A breakout above or below these levels will provide a direction,” he said.
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He also highlighted that Bank Nifty has shifted its support to 48,000, with 48,900 acting as resistance.
Broader market action suggests potential breakouts in stocks like Deepak Nitrite, Poonawalla Fincorp, and REC, which are forming an inverted head and shoulders pattern.
In the auto sector, M&M and TVS Motors are showing a symmetrical triangle formation, while the pharma sector, with stocks like Aurobindo Pharma, Cipla, and Glenmark, is preparing for a breakout from a falling channel pattern. Energy stocks like Coal India and ONGC are also showing strong technical signals.
With domestic and global factors aligning, all eyes will be on whether Nifty manages to break past its immediate resistance levels in today’s session.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)