The new week is likely to begin on a strong note for domestic markets. Gift Nifty at 26,550 indicates that could jump over 100 points at open, as analysts see a fall in crude prices, following the US-led regime change in Venezuela, which will benefit countries like India. Asian stocks led by Japan’s Nikkei and Korea’s Kospi are up sharply in early deals on Monday.
However, analysts warn that volatility would increase if instability increases on a global scale.
Indian equity markets are set to begin the week on a bullish note, supported by firm global cues and improving optimism ahead of the Q3 earnings season, said Ponmudi R, CEO of Enrich Money.
A sharp rally across Asian markets has lifted broader emerging market sentiment, providing a positive spill-over for Indian equities.
“Asian markets have posted strong gains in early trade today, with the KOSPI and Nikkei surging over 2 per cent, driven by renewed optimism around AI, technology-led buying, and an improvement in global risk appetite. With the Nifty having scaled record highs last week, this positive global momentum strengthens the case for continued upside in both the Nifty and Sensex,” he added.
Ajit Mishra – SVP, Research, Religare Broking Ltd, said the coming week is expected to be data-heavy, both domestically and globally, as markets enter the early phase of the earnings season. In India, investors will track the final readings of the HSBC Services PMI and Composite PMI, followed by FY GDP growth data. Bank loan growth, deposit growth, and foreign exchange reserves data will offer insights into credit demand and liquidity conditions.
Globally, key US macro data and releases from China will be closely watched for signals on growth, demand, and inflation trends.
Meanwhile, JM Financial, in a report on Nifty analysis said 28 per cent of Nifty companies saw a cut in FY27E EPS estimates in Dec’25, with Pharmaceuticals, Consumer, Banks, Metals & Mining, Infrastructure & Ports, and Oil & Gas being the key contributors. The stocks that saw the biggest EPS cuts include Interglobe Aviation, Eternal, SBI, Shriram Finance, and ONGC, while stocks that saw the largest upgrades include Kotak Bank, ICICI Bank, Bharat Electronics, Trent, and Grasim.
Ponmudi expects that if the rally continues, it would favour automobiles (on demand revival), metals (supported by China-related optimism and US rate-cut expectations), financials (liquidity-driven participation), and IT/technology (aligned with the global AI and semiconductor cycle). Energy and PSU stocks also remain well-supported by policy tailwinds and domestic growth visibility. While valuations and intermittent FII outflows may cap near-term exuberance, the broader trend remains constructive, he further said.
Meanwhile, derivatives trading on the NSE also presents a bullish outlook.
The derivatives set-up echoes the bullish undertone, said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities. “Put writers have added fresh positions at at-the-money and nearby strikes, creating a solid base and limiting downside risks. In contrast, call writers have significantly unwound their earlier positions and shifted exposure to higher strikes, indicating expectations for continued upside rather than a near-term correction,” he added.
A substantial build-up of nearly 1.83 crore contracts at the 26,000 put strike has firmly established this level as an immediate support zone. On the upside, the addition of approximately 1.13 crore call contracts at the 26,500 strike has emerged as a key near-term resistance.” The Put-Call Ratio (PCR) has jumped sharply to 1.63, reflecting strong bullish sentiment and buyer dominance at lower levels. While such elevated PCR readings may invite brief profit-booking, the underlying support structure remains attractive for buying on minor intraday declines,” he said further.