Indian Markets Eye Bounce Amid Volatility

Indian stock markets opened flat but show potential for a rebound. While markets remain in oversold territory, sectoral gains suggest a tentative upward movement. Analysts observe global factors and domestic technical levels as key influences on market trends.

The Indian stock markets commenced trading on a flat note on Tuesday, with the pervasive selling risk continuing to loom, yet the indices are currently categorized as oversold. The Nifty 50 index showed a modest gain, opening at 23,165.90 points, up by 0.35%, while the BSE Sensex registered a minuscule rise, commencing at 76,335.75 points with a gain of just 0.01%.

Following a significant downturn the previous day, market experts indicate that the indices are nearly reaching oversold territory, opening the possibility for a brief upswing. Ajay Bagga, a Banking and Market Expert, highlighted that despite several factors like a depreciating Rupee, consistent FPI sell-offs, and adverse economic indicators, the day exhibited the potential for a technical bounce. However, uncertainty persists as to whether this level will mark a bottom or signal another 'sell on every rise' strategy amid global dynamics, including potential gradual tariffs from the Trump administration.

During the trading session, most sectoral indices on the National Stock Exchange saw gains, excluding Nifty IT and Nifty FMCG. Notably, Nifty Realty rose by over 1.68%, Nifty Media increased by around 2%, and Nifty PSU Bank advanced by 2.37%. According to Akshay Chinchalkar, Head of Research at Axis Securities, the market technically finds support between 22,830 - 23,000 points, with resistance predicted within the 23,450 - 23,500 range. The consistency of bearish oscillators on daily and weekly charts further defines the cautious outlook.

In the Nifty 50 index, 40 stocks recorded gains, while 10 experienced losses. Leading gainers included NTPC, Hindalco, and IndusInd Bank, whereas HCL Tech, Tech Mahindra, and Infosys faced losses. Several companies, including HDFC AMC and Network 18, are scheduled to release their third-quarter earnings today, potentially influencing market sentiment.

Meanwhile, Asian markets reported varied performances, with Japan's Nikkei 225 and Singapore's Straits Times Index declining, whereas indices like Hong Kong's Hang Seng, Taiwan Weighted, and South Korea's KOSPI experienced upward trends as reported.

(With inputs from agencies.)