Sensex, Nifty to open flat despite positive global trends

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Despite positive global markets, Gift Nifty indicates a flat opening for domestic markets on Tuesday. According to analysts, market will see stock-specific action ahead of August F&O expiry on Thursday on the NSE. 

According to experts, market now lack positive triggers to move up. Consolidation phase to continue for some more time, they added, as domestic macros remain strong,

Credit off-take continued to grow at a similar pace sequentially, increasing by 19.7 per cent year on year (y-o-y) to reach Rs. 148.8 lakh crore for the fortnight ended Aug 11, 2023. “This surge continues to be primarily driven by the impact of HDFC’s merger with HDFC Bank, as well as growth in personal loans and NBFCs. Meanwhile, if merger impact is excluded, credit grew at a lower rate of 14.8% y-o-y fortnight compared to last year,” said CareEdge in a report.

Deposits too witnessed healthy growth, increasing by 13.5% y-o-y for the fortnight (including the merger impact), it added.

“Markets are likely to remain in consolidation mode this week amidst key events including the release of domestic GDP data, monthly expiry, and domestic and global macroeconomic data. Also ~7% deficit in the Jun-Sept monsoon could keep upside limited,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

The continuous selling by foreign portfolio investors will add pressure to the markets. Besides, the impending settlement of derivative monthly contracts on the NSE to keep market volatile, said analysts.

A note from Choice International, said: Volume profile indicates Index has a strong support around 19250-19300 zone. Coming to the OI Data, on the call side, the highest OI observed at 19500 followed by 19400 strike prices while on the put side, the highest OI is at 19300 strike price.

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities, said: Nifty Futures Open Interest (OI) also indicated buildup of long positions in Index futures for the first time since August 16. The Put-Call Ratio (PCR), a sentiment indicator, rose from 0.66 to 0.86, indicating fightback from the bulls.