FIRST TRADE: Indices snap 7-day loss; Sensex up 271 pts, Nifty at 23,538

Indian equities in Tuesday's trade after seven sessions of weakness traded mildly higher. Nifty at the open was up 0.36 per cent or 84 points at 23,537.5, while the Sensex gained 0.35 per cent or 271.42 points to 77,610.43.

Bank Nifty also gained by 0.4 per cent with ICICI Bank, HDFC Bank and Federal Bank leading the pack.

Also, the broader markets showed strength with both the smallcap and midcap indices in the green.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "An important takeaway from the recent market trend is that a quick and sharp recovery is not in sight. The momentum that drove the market to its record peak of 26,216 in September is gone. There can be recoveries which are unlikely to sustain given the selling mode of the FIIs and the concerns surrounding the weak earnings growth feared in FY25."

At best the market may consolidate around the  present levels with sideways movements. Sustained up moves will emerge only when incoming data indicates earnings recovery, he added.

A significant trend is the sustained weakness emerging in a large number of mid and smallcaps. Hundreds of such stocks, which had run ahead of fundamentals, and driven by momentum are reverting to mean. Investors need not rush in to grab these stocks which have more downside potential. In contrast, quality largecaps are resilient and investors can stick to them."

Nifty outlook:

Anand James, Chief Market Strategist, Geojit Financial Services said, "Attempts to push higher seen yesterday were weak, resigning Nifty to the seventh day of negative close, the longest stretch of consecutive red candles since the ongoing downtrend began on 27th Sep. Nevertheless, we will retain revival hopes, with RSI appearing bottomed out, but will limit upside target to 23733-88 for now, awaiting further signals for the 24111 move. Alternatively, inability to float above 23565 could delay recovery moves, but a collapse is less expected today."

Asian markets

The key MSCI ex Japan index traded with gains of 0.85 per cent at 582.43. Barring the Shanghai Composite, all the major Asian markets traded in the green, witn the Jakarta Composite and Taiwan Weighted indices up over 1 per cent each.

The gains were largely fuelled as tech stocks led tracking gains in the overnight session in the US.