Indian equity benchmark indices are headed for a muted opening on Tuesday amid mixed cues from the global peers. The remained rangebound after Strait of Hormuz opened but US dollar remained firm. Investor attention will also be focused on the ongoing India–US trade negotiations, direction of monsoon and inflationary cues.

Indian equities are expected to maintain a positive bias, supported by progress in the US-Iran negotiations, firm global cues, lower crude oil prices, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. "A normal and well-distributed monsoon remains critical for supporting agricultural output, rural demand and inflation stability, thereby influencing the broader market outlook."

GIFT Nifty, Asian markets & US stocks
GIFT Nifty Futures on the NSE International Exchange were 8.70 points, or 0.04 per cent, up at 24,132.50, hinting at a muted start for the domestic market on Tuesday. Asian stocks mostly eased on Tuesday after the US waived sanctions on Iran. KOSPI cracked more than 4 per cent, while Hang Seng and Nikkei were down a per cent each.

Wall Street stocks closed mostly down on Monday, dragged by declines in the megacap technology stocks as investors assessed developments in US-Iran negotiations. The Dow Jones Industrial Average rose 148.01 points, or 0.29 per cent, to 51,712.71, the S&P 500 lost 27.79 points, or 0.37 per cent, to 7,472.79 and the Nasdaq Composite shed 351.33 points, or 1.32 per cent, to 26,166.60.

Crude, US dollar, gold & more
Brent crude was up 0.2 per cent at $78.03 per barrel. The US dollar index was trading at 101.04. Gold was down 0.2 per cent at $4,180.38. In cryptocurrency markets, bitcoin slid 0.8 per cent to $63,873.71. The yield on the US 10-year Treasury bond was down 0.2 basis point at 4.501 per cent.

Sentiment improved following reports of progress in the ongoing US-Iran peace negotiations, which eased concerns over potential disruptions to global energy supplies, said Ajit Mishra, SVP of Research at Religare Broking. "We continue to maintain a constructive stance and recommend following a 'buy on dips' with reiterating preference for rate-sensitive segments and avoid long positions in the IT space."

FII-DII flows
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 635.91 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 1,035.72 crore on a net-net basis.

NIfty50 & Sensex outlook
The market has formed a double top pattern on intraday charts, and has formed a small candle on daily charts, indicating indecisiveness between the bulls and bears. For day traders, 24,150/77,300 and 24,200/77,500 would act as immediate resistance zones, while 24,000/76,800 would serve as a key support area, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

"On the higher side, above 24,200/77,500, the market could rally to 24,325-24,350/77,800-78,000. On the flip side, below 24,000/76,800, we could see a quick intraday correction to 23,900-23,850/76,500-76,400. The intraday market texture is non directional hence level based trading would be the ideal strategy for the day traders," he added.

Sensex has reclaimed the crucial 77,000 mark, indicating that the near-term trend remains constructive despite recent volatility. Immediate resistance is placed near 77,400, followed by 77,500, while the 76,700–76,800 zone is expected to act as a strong support area and may continue to attract buying interest from positional investors, said Aakash Shah, Research Analyst, Choice Equity Broking.

The immediate hurdle for Nifty is placed in the 24,150-24,200 range, and a decisive breakout above this zone could trigger fresh short covering and pave the way towards 24,400. On the downside, any breach below 24,000 may weaken the current momentum and drag the it towards 23,900-23,800. Tthe strategy remains buy on dips while the Nifty holds above the 24,000 mark, said Rajesh Palviya, Head of Research at Axis Direct.

Nifty Bank outlook
Nifty Bank continues to trade comfortably above its key short and long-term moving averages, indicating underlying strength, said  Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities. "We expect it to maintain its upward trajectory and test the 58500 level, followed by 59100 in the near term. On the downside, the 57500–57400 zone is likely to act as immediate support."

Nifty Bank formed a high wave candlestick pattern with a higher high and a higher low signaling continuation of the positive momentum. It has generated a bullish crossover of 20 & 50 days EMA in the daily chart, supports the positive bias. A decisive move could reignite momentum and pave the way for an advance towards 58,300 and 59,250 levels in the coming sessions, said Bajaj Broking. 

"We believe the overall structure is positive, and any dips should be used to accumulate quality banking stocks in a staggered manner.  Key support is placed at 56,000 levels being the confluence of the 38.2 per cent retracement of the entire pullback 53,027-57954 and the recent breakout area," it adds.