Image Source: Business Standard

Indian markets ended Monday nearly flat, with the Sensex rebounding 702 points from intraday lows to close at 75,996.86. Gains in financials and Reliance Industries offset losses in IT and FMCG stocks.

Here’s what will shape Tuesday’s market action:

1) Global Cues: US markets are observing a Trading Holiday on account of Washington's birthday, however U.S. Futures markets trade mixed, with the Dow gaining 0.29% while the Nasdaq declined 0.58%. European markets hit record highs, driven by energy stocks and optimism over delayed U.S. tariffs.

2) RBA Decision: The Reserve Bank of Australia’s interest rate decision is due Tuesday, which could influence sentiment in Asian markets.

2) Earnings Focus: Key results from Walmart, Alibaba, and Rivian are expected to impact global equities.

4) Crude Oil Prices: Brent crude dipped to $75 per barrel, which may affect energy stocks.

5) Domestic Yields: Rising domestic bond yields continue to steer investor preference toward safe-haven assets like gold.

6) Technical Outlook: Nifty faces resistance at 23,550 and risks falling below 23,000 if bearish momentum persists.

7) Active Stocks: High turnover was seen in Mazagon Dock Shipbuilders, HDFC Bank, and Mahindra & Mahindra on Monday.

8) Sectoral Trends: Energy stocks rallied globally, while IT and FMCG remained under pressure domestically.

9) Economic Data: Investors await U.S. housing starts and building permits data later this week for economic cues.

10) Market Sentiment: A cautious tone persists amid weak demand and margin pressures across sectors.

Source: Economic Times, ig.com, business standard,  saxo bank