The Indian stock market is expected to open on a positive note today, with Nifty extending its gains for a second consecutive session. The benchmark index closed at 25,711 points on Monday, driven by domestic sector-specific momentum and mixed global cues.
Analysts believe that the market will remain range-bound today, with a positive bias. This is expected to be driven by the domestic sector’s performance, which has been showing signs of recovery recently.
On the global front, India VIX saw a slight decrease, indicating a reduction in market volatility. However, the rupee strengthened against the US dollar, which could have a positive impact on the Indian economy.
The rupee’s strengthening is attributed to the decline in crude oil prices, which has reduced the country’s import bill. This has led to a decrease in inflation and interest rates, making it more attractive for investors.
In terms of trading setups, traders are advised to keep an eye on sector-specific stocks, particularly those from the financial and consumer sectors. These sectors have been performing well recently and are expected to continue doing so.
Additionally, traders should also look at the optionals, which are expected to be in demand today due to the positive bias in the market. The Nifty 50 index is expected to see a range of $5,500 to $6,000, with a target price of $25,900.
Overall, the Indian stock market is expected to remain volatile today, but with a positive bias. Traders should keep an eye on sector-specific stocks and optionals to make the most of this trend.
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