Indian benchmark indices are headed for a muted start on Tuesday as global market brace up for key US economic data, along with March quarter earnings from some of the largest global companies. Back home, Q4 earnings and tension with Pakistan will be in focus during the truncated week.

Nifty futures on the NSE International Exchange traded 39.70 points, or 0.16 per cent, higher at 24,492.50, hinting at a positive start for the domestic market on Tuesday. Asian stocks ticked sideways on Tuesday owing to Japan's holiday. Hang Seng and KOSPI led the gainers with a three-fourth of a per cent rise, while ASX200 and DJ were up two-third a per cent.

The absence of any major geopolitical developments between India and Pakistan over the weekend, along with stability in global markets, eased pressure and triggered an upbeat start, said Ajit Mishra, SVP of Research at Religare Broking. "This buoyancy is certainly encouraging, but investors should maintain a positive yet cautious bias, given the lingering geopolitical tensions," he said.

US stocks closed a choppy session little changed on Monday, weighed down by megacaps as investors awaited several catalysts including key economic data and megacaps earnings. The Dow Jones Industrial Average rose 0.28 per cent to 40,227.59, the S&P 500 gained 0.06 per cent to 5,528.75 and the Nasdaq Composite lost 0.10 per cent to 17,366.13.

The weaker dollar has set gold surging and it was at $3,333 an ounce on Tuesday, up nearly 7 per cent in April. Brent crude was a touch weaker at $65.68 a barrel. Treasuries were untraded in Asia owing to Japan's holiday, leaving benchmark 10-year yields at 4.206 per cent and futures broadly steady.

The dollar barely recouped its heavy losses on Tuesday as investors were no clearer on whether a de-escalation of the Sino-US trade war was underway with Treasury Secretary Scott Bessent suggesting the onus was on China to start negotiations. Investors were also bracing for a week packed with US economic data.
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A weakening dollar and inflationary pressure in the US may attract FIIs into the domestic market but investors are advised to exercise caution in the near term as the market is yet to discount the impact of retaliation for the Pahalgam terror attack, said Vinod Nair, Head of Research at Geojit Investments.

Nifty outlook
Nifty is in continuation of an uptrend, as it did not even break below its 8 days EMA during running correction, said Nandish Shah, Senior Derivative & Technical Research Analyst at HDFC Securities. "Next resistance for index is seen at 24,545, which happens to be 61.8 per cent retracement of the entire fall seen from 26,277 to 21,743. On the downside 24,150 could offer immediate support for Nifty."

Shrikant Chouhan, Head Equity Research at Kotak Securities believes that the short-term market texture is still on the bullish side but buying on intraday dips and selling on rallies would be the ideal strategy for day traders. Nifty formed a long bullish candle on the daily charts, which supports a further uptrend from current levels.

"On the downside, 24,200/79,800 and 24,100/79,500 would act as key support zones, while 24,400-24,500/80,500-80,700 could serve as crucial resistance areas for the bulls. However, if the market falls below 24,100/79,500, the uptrend would become vulnerable," he said.

Nifty Bank outlook
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities said that Nifty Bank has carved a well-established trading corridor between 54,300 and 56,000, oscillating within this range over the past six sessions. This band has now emerged as a crucial zone for directional clarity in the coming days.

"Bullish momentum is gradually firming up, as price action continues to hover above the breakout neckline, supported by the 10-day EMA, both reinforcing the underlying strength of the bulls. A bullish candlestick pattern emerged on the daily chart following the recent profit-booking bout, further strengthening the positive bias. It continues to exhibit a 'buy-on-dips' structure," he said.

Bank Nifty formed a bullish engulfing candle, indicating a potential resumption of the upward trend after a three-session pause. Buying interest was seen emerging near the previous breakout zone, said Bajaj Broking. "On the downside, key support is seen between 53,000-53,500, which corresponds to the gap-up region and the previous significant breakout zone," it said.