Indian Markets Open Firm On Expiry Day Sugar Stocks Surge After Ethanol Policy Boost

Indian equity markets opened the expiry session on a positive note, with the Nifty index holding above 24,700, propped by gains in Reliance and Eternal. 

At 09:45 a.m. IST, the Nifty 50 traded 69 points higher at 24,694, while the Sensex was up 225 points at 80,590. Broader markets mirrored the optimism, with the Nifty Midcap and Smallcap indices trading over 0.3%.

The retail sentiment on Stocktwits for Nifty has moved from 'bearish' to 'neutral' at market open. 

Stock Watch

Sectorally, it's a mixed bag with autos, technology, metals, and pharmaceuticals seeing some selling pressure. On the other hand, energy and FMCG gained in early trade. 

The sector of the day is sugar: shares of Shree Renuka, Dwarikesh, and Ugar Sugar rose over 10%, while those of Balrampur Chini and Triveni gained over 5% after the government removed all curbs on ethanol production from sugarcane juice, syrup, and molasses. 

CEAT rose 3% after acquiring Michelin Group's CAMSO construction compact line business, including two plants in Sri Lanka, and announcing a $171 million investment in the country.

Puravankara rose over 3% after securing redevelopment rights for a 1.43-acre project in Malabar Hill, Mumbai, with a potential revenue of ₹2,700 crore.

Syrma SGS shares rose over 1% on a joint venture with Italy-based Elemaster S.p.A Tecnologie Elettroniche to expand its electronics design and manufacturing capabilities.

Axiscades gained over 2% on securing two pilot orders worth $1.2 million for aircraft cabin interior design and retrofit solutions from leading aerospace players in Europe and the US.

Stock Calls

Analyst Vinayak Gautam shared three stock recommendations for Tuesday:

Balrampur Chini: Buy at ₹541 with a target price at ₹565, and stop loss of ₹535

NTPC Green: Buy at ₹104 with a target price at ₹110, and stop loss of ₹102

Royal Orchid Hotels: Buy at ₹495 with a target price at ₹530, and stop loss of ₹480

Markets: The Road Ahead

From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup. 

Ashish Kyal said that if the Nifty index moves towards 24,570-24,590 and then reverses back on the upside above 24,640, it can aim for the target of the Gann 24,728 levels. On the downside, 24,490 is considered the immediate support level. A break below this can provide a scalping opportunity for a move towards 24,420 levels. He advised traders to avoid positional trades and keep scalping.

Prabhat Mittal has pegged Nifty intraday support at 24,480, with resistance at 24,820. For Bank Nifty, he sees support at 53,700 and resistance at 54,500.

Sameer Pande said that Nifty is trying to form a double bottom around 24,500-24,340. 24,700 is considered a critical resistance level, followed by 25,000.

Pradeep Carpenter believes that the market is likely to see a range-bound expiry between 24,550 and 24,750 unless fresh triggers emerge. He advised traders to watch for a decisive close above 24,695 (20 DMA) to confirm strength.

Global Cues

Globally, Asian markets traded mixed, while crude oil prices held higher ahead of an upcoming OPEC+ meeting and US moves on Russian supplies.

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