Stock markets are likely to sustain their momentum thanks to positive global cues. With the much anticipated profit-taking still elusive, traders are debating whether to commit fresh funds or book profits, said an analyst. The market will remain lacklustre till the next key trigger emerges, one of which could be the upcoming Budget presentation, which is expected to be in the third week of this month. 

Umesh Revankar, Executive Vice-Chairman at Shriram Finance Ltd, said:  “We are confident that the government will continue to focus on infrastructure, as they aim to make manufacturing in India more affordable and globally competitive. Logistics plays a crucial role in this, and improvements in logistics are likely to provide India a significant advantage on the international stage. Consequently, the government is expected to continue investing in infrastructure.”

Additionally, this time, the government will likely focus on rural infrastructure, as it enhances the rural market’s access to urban areas, leading to better economic realisation for the rural economy. The combined focus on both urban and rural infrastructure is expected to drive better growth. A rapidly growing rural market will offer better economies of scale for rural manufacture and agriculture, while the urban industrial and manufacturing sectors will gain greater opportunities in the international market. Hence, we anticipate that the government will maintain its focus on these two areas, he added.

Gift Nifty at 24260 indicates another positive opening as Nifty futures on Monday closed at 24206.25.

Ajit Mishra – SVP, Research, Religare Broking Ltd, said:  the consistent buying interest on dips suggests bullish control likely continuing the current tone. The renewed strength in midcap and smallcap segments adds further positivity. Traders should focus on selecting sectors/ themes with rotational participation and consider adding positions during pauses or dips, he advised.

Mandar Bhojane, Research Analyst, Choice Broking, said: As the market is in an overbought zone, investors and traders should cautiously trail their stop-loss orders. Any dip near the 23,600 and 23,200 levels will present a buying opportunity. Regarding the Open Interest (OI) data, on the call side, the highest OI was observed at the 24,500 and 24,700 strike prices. On the put side, the highest OI was at the 24,000 strike price, he added,

Meanwhile, equities across the Asia-Pacific region are up in early deals on Tuesday .

According to Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities, The long short ratio jumped to 83 per cent on June 28 from 82 per cent on June 27 as the Foreign Portfolio Investors (FPIs) covered their short positions and built long positions in Index futures. The 24000 & 24,100 strike saw significant put writing, which led the steady upmove in the Index on Monday. The maximum put open interest for Nifty is placed at the 24,000 Strike. This level will act as the immediate support for Nifty. The call writers, the Bears, (1.62 lakh contracts) lead the put writers (62K contracts) at the 24,200 strike and the option activity at this strike will provide cues about Nifty’s future direction.

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