Gift Nifty at 24,720 signals a flat-to-positive opening on Tuesday, as Nifty futures on Monday closed at 24,694. Analysts expect the market to continue in consolidation mode; according to them, benchmarks’ movement will remain lacklustre, and some stock-specific activities will be market-active.

Deepak Jasani, Head of Retail Research at HDFC Securities, said: The US stocks finished lower on Monday after the S&P 500 and Nasdaq Composite ended last week at records and as investors await consumer-price index data to be released on Wednesday — which may be the last wild card that could upset expectations for a Federal Reserve interest-rate cut in December. US stocks retreated after a rally that put the market on pace for its best year since 2019, with traders awaiting key inflation data that will help shape the outlook for Federal Reserve rates.

“Asian equities advanced after China’s top leaders signaled bolder stimulus next year as they seek to revive the world’s second-largest economy,” he added.

According to him, investors are keenly watching this week’s India IIP and inflation numbers, which would be a key driver in influencing RBI on rate cut decisions. “Short-term trend of Nifty is still bullish as it is placed above its 5, 10 and 20 days EMAs. Short term support for the Nifty is placed at 24550, while resistance for the same is seen at 24857,” he added.

Chola Securities said that given the elevated valuation and market-cap-to-GDP ratio, it is cautious about Indian equities from a short- to medium-term perspective. “However, deep corrections will be an opportunity to accumulate quality companies at lower levels.”

Meanwhile, FPIs have maintained their buying spree in Indian stock markets.

Rajesh Bhosale, Technical Analyst – Angel One Ltd, said: Traders should monitor the range between 24400 and 24800, with a “buy on dip and book profits at higher ranges” strategy during this consolidation phase. Individual stocks continue to show promise, and traders should focus on stock-specific actions while being selective, as not all sectors are participating equally, he added.