Stock market opening today: Sensex, Nifty to open flat after Wall Street crash?

While Sensex and Nifty ended the previous session at their highest levels since January 6, the sharp fall in US markets overnight may cap gains during early trade on Tuesday.

In Short

• Dalal Street likely to open muted after Monday's rally
• US markets fell due to Donald Trump's Fed criticism
• Bank stocks driving market, aided by FPI buying

Dalal Street is expected to start on a muted note today after a strong rally on Monday, as global worries weigh on investor mood. While Sensex and Nifty ended the previous session at their highest levels since January 6, the sharp fall in US markets overnight may cap gains during early trade on Tuesday.

US stock indexes fell sharply on Monday after President Donald Trump once again criticised the US Federal Reserve and its chair, Jerome Powell. His comments created fresh doubts about the Fed’s independence and caused unease among global investors. As a result, the dollar index dropped to a three-year low and Wall Street saw a sell-off across sectors.

Gift Nifty futures were trading at 24,164 at 8:08 am, showing a flat to slightly positive opening for Nifty 50 compared to Monday’s close of 24,125.55.

Aditya Gaggar, Director of Progressive Shares, said, "The market ended the session on a strong note, driven by robust movement in heavyweight stocks, pushing the Index higher to close at 24,126. Despite the bullish momentum, Index has entered an overbought zone, suggesting that a minor correction may be on the cards.

Despite weak global cues, stock markets could find some support from recent domestic developments. The Reserve Bank of India (RBI) has announced fresh regulatory steps to ease liquidity pressures on banks.

It has allowed lenders to set a lower-than-planned buffer rate of 2.5% on digitally linked deposits. Banks have been given one year to meet this requirement. This move is likely to help banks in managing their funds more easily.

BANKING STOCKS MAY CONTINUE TO DRIVE MARKETS

Bank stocks have played a key role in lifting the market over the past week. Strong earnings from HDFC Bank and ICICI Bank, along with hopes of better margins after recent deposit rate cuts, have improved investor confidence. Buying by foreign portfolio investors (FPIs) has also supported the market.

On Monday, FPIs bought shares worth Rs 1,970 crore, marking their fourth straight session of buying. The steady inflow is also linked to the weaker dollar, which makes Indian markets more attractive to foreign investors.

According to VLA Ambala, Co-Founder of Stock Market Today, Nifty could find support at 23,980, 23,900, and 23,830 in today’s trade.

"Fundamentally strong companies in the PSU niche could continue to garner interest, but focus might shift once they reach high valuation levels. Considering these aspects, we can expect the Nifty 50 to gain support levels at 23,980, 23,900, or 23,830 and face resistance between 24,250 and 24,370 in the next intraday trading session," said VLA Ambala, Co-Founder of Stock Market Today.

Asian markets opened mixed today following the fall in US markets. Investors in the region are watching how the political tension in the US affects global growth and monetary policy. There are concerns that continued attacks on the US Federal Reserve could damage market stability and hurt investor confidence in US financial systems.

(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.)