Indian equity Indices closed on a flat note on Tuesday. The Nifty 50 reclaimed 23,300 but later closed 5.65 points or 0.02% higher from its previous at 23,264.85. Similarly, the BSE Sensex fell 34 points or 0.04% to 76,457. Bank Nifty dropped 75 points or 0.15% to 49,706. During the session, railway stocks were quoting higher as Ashwini Vaishnaw retained the Ministry of Railway and housing companies also helped markets after Cabinet decided to assist in building 3 crore homes under PMAY. The major losers in the Nifty 50 include Kotak Mahindra Bank, Divi’s Lab, Asian Paints, Dr. Reddy’s Laboratories, and Reliance Industries.

Flipping the trend, Nifty Midcap 100 rose 431 points or 0.81% to settle at 53,666.50. In the broader markets, midcap and smallcap closed in the green. 

Vinod Nair, Head of Research at Geojit Financial Services said that after a notable rebound, the domestic market has stabilized, awaiting further triggers. With the resolution of uncertainties in government formation, attention has shifted back to global and domestic indicators. “Concerns have risen regarding potential U.S. rate cuts following last week’s strong U.S. job data, leading to an increase in U.S. bond yields. However, FIIs have been net buyers lately. Investors are now gearing up for this week’s policy decisions from the U.S. Fed and the BoJ, as well as key inflation data from the U.S. and India, seeking insights into the trajectory of rate cuts,” he said.

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“This pause in the index was largely anticipated, and we expect it to conclude soon. In the meantime, traders should maintain a stock-specific trading approach with a positive bias. In addition to key sectors, certain themes like agriculture-related stocks (fertilizer and sugar) and chemical stocks are drawing noticeable interest. Participants should adjust their positions accordingly,” said Ajit Mishra, Senior Vice President of Research at Religare Broking. 

Bank Nifty 

“The BankNifty Index experienced a sideways trading session and was unable to surpass the 50000 mark, where the highest open interest is built up on the call side. Once the index breaks above 50000, it is likely to see a sharp short covering towards the 50500/51000 levels. The undertone remains bullish, and traders should adopt a buy-on-dip approach with support at 49000, where the highest open interest is built up on the put side,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.