Indian equities are expected to open on a flat to positive note on Tuesday, February 4, with volatility anticipated throughout the trading session. After Friday’s Budget-driven rally, investors will now shift their focus to global cues and sector-specific movements.
Global Market Cues
Asian markets opened in the green, buoyed by supportive overnight cues from Wall Street. This comes after U.S. equity index futures traded higher as President Donald Trump postponed plans to impose trade tariffs on Canada and Mexico, easing some concerns over global trade tensions. However, investor sentiment remains cautious as attention turns to the U.S.’s tariff stance on China and Europe, which could have broader implications for global markets.
U.S. markets are also looking to rebound after recent losses, with the Dow Jones, S&P 500, and Nasdaq futures showing gains. European markets ended mixed last week as investors weighed economic data against geopolitical developments.
Sectors to Watch
On the domestic front, auto stocks are expected to remain in focus, particularly after favorable Budget measures aimed at boosting disposable income and consumption. Selective metal stocks may also see movement, influenced by global commodity prices and demand outlook.
Pre-Open Market Indicators
- GIFT Nifty is trading at 23,538, up by 96 points or 0.41%, indicating a positive start for the benchmark indices.
Technical Outlook
- Nifty Near Future:
- Support levels are placed at 23,250
- Resistance levels are at 23,592 and 23,644.
- Bank Nifty Near Future:
- Support levels are at 49,294 and 49,151.
- Resistance levels are seen at 49,862 and 49,984.
With the Budget now behind, markets will be looking for fresh triggers in the form of corporate earnings, global economic data, and policy updates from major economies. The volatility index (VIX) may also remain elevated, reflecting the uncertainty around global trade tensions and interest rate trajectories.
Investors are advised to stay cautious and closely monitor sector-specific movements and global market trends as they navigate through the day.
