Indian equity markets are expected to open Tuesday, February 10, with a mildly positive bias, supported by steady global cues and sustained domestic optimism, though traders are likely to remain cautious amid volatility linked to derivatives expiry and recent sharp moves in benchmark indices.
Overnight cues from global markets remain broadly supportive, with Asian equities trading firm in early hours and US markets having closed mixed but stable, offering no major negative triggers.
GIFT Nifty trends point to a marginally higher opening for domestic benchmarks, indicating continuity of momentum from the previous session rather than a sharp directional move at the open.
At home, sentiment continues to draw support from expectations of resilient economic growth, improving corporate earnings visibility and selective foreign portfolio inflows after a prolonged period of selling. However, investors are also mindful that the market has rallied meaningfully in recent sessions, which could prompt bouts of profit-taking, particularly at higher levels.
Tuesday’s session coincides with the weekly derivatives expiry, a factor that could amplify intraday swings. Traders are expected to closely track positioning in index options and futures, which may lead to sharp but short-lived moves, especially in heavyweight stocks that influence benchmark indices. Volatility is therefore likely to remain elevated through the day, even if the broader trend stays constructive.
From a technical perspective, the Nifty is seen consolidating near key resistance levels, with support expected to emerge on declines as long as it holds above its recent breakout zone. Sustained buying could pave the way for a gradual move higher, while a failure to hold key supports may trigger a brief corrective phase.
The Sensex, too, is trading near important technical thresholds, where market participants are likely to adopt a stock-specific approach rather than chase the index.
Sectorally, banking and financial stocks are expected to stay in focus, given their outsized influence on the indices and recent momentum in select private lenders. Information technology stocks may see selective interest, tracking global tech cues and currency movements, while metal and energy stocks could respond to overnight trends in commodities. Mid-cap and small-cap stocks may continue to witness selective buying, though valuations and recent gains could cap aggressive upside.
Investors will also keep a close watch on foreign institutional investor activity, movements in the rupee, and crude oil prices for cues on risk appetite. Any unexpected global developments or sharp currency moves could influence sentiment during the session.
Overall, the market outlook for Tuesday points to a cautiously optimistic start, with the broader tone remaining positive but punctuated by volatility. Participants are likely to balance optimism on growth and earnings with caution around elevated levels and expiry-related fluctuations, resulting in a session marked by selective buying and active intraday trading rather than a one-way move.