Domestic markets are expected to remain nervous at the opening due to the Q4 result season and ongoing general election process. The climbing volatility index indicates that traders would prefer profit-taking amidst global and domestic uncertainties.
Stocks in Asia are mixed with equities in Japan falling, and those in South Korea and Australia climbing higher.
Gift Nifty at 22,410 indicates a positive start, as Nifty May futures closed at 22,382.
“We expect this volatile move to continue till the exit polls. Hence, the market would remain in a broad range until clarity emerges,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
From an all-time high of 22,794, Nifty has corrected more than 550 points in the span of three trading sessions. Cash market volumes on the NSE fell to ₹1.08 lakh crore.
Meanwhile, foreign portfolio investors have stepped up their selling.
According to Devarsh Vakil – Deputy Head of Retail Research, HDFC Securities, Nifty has corrected more than 550 points from an all-time high of 22,794 in a span of three trading sessions. Cash market volumes on the NSE fell to ₹1.08 lakh crore.
On Tuesday, Nifty Midcap 100 and SmallCap 100 indices underperformed the Nifty, plunging by 1.95 per cent and 1.89 per cent, respectively, as against a 0.62 per cent fall in the Nifty. “Declining shares outnumbered advancing shares, as the advances-declines ratio stood at 0.40 on BSE, the lowest since April 15,” he added.
Shrey Jain, Founder and CEO SAS Online – India’s Deep Discount Broker, said: Tuesday’s market downturn cannot be attributed to any major news akin to the preceding two trading sessions. “Rather, it appears to stem from investor nervousness amid the ongoing general election outcome. This sentiment is reflected in the rising VIX, which climbed to 17 today, surpassing the crucial resistance zone of 16.5 to 17,” he said.
Given these circumstances, investors are advised to exercise caution and consider adjusting their positions to mitigate risk, he further said.
Deven Mehata, Research Analyst, Choice Broking, said: Coming to open interest data, on the call side, the highest OI observed at 22500 followed by 22600 strike prices, while on the put side, the highest OI is at 22000 strike prices. On the other hand, Bank Nifty has support at 48000-47800, while resistance is placed at 49000 levels, he said.
