Markets are likely to open on a flat note on Wednesday. Gift Nifty at 24,335 indicates that Nifty is likely to open lower by around 50 points. Analysts expect the market to remain volatile during the day, as West Asia developments will anchor market movement.
Hariprasad K, Founder, Livelong Wealth, said: Indian equities are expected to open on a cautious note on Wednesday, with Gift Nifty signalling a largely flat start following the sharp rebound seen in the previous session. After yesterday’s strong recovery, the market currently lacks fresh domestic triggers to sustain an immediate follow-through rally, suggesting that a phase of consolidation could emerge in the near term.
“Global cues remain mixed as investors continue to closely track developments in West Asia and the sharp swings in crude oil prices. Brent crude futures dropped nearly 11 per cent to around $87.8 per barrel, extending the decline after briefly surging to their highest intraday levels since 2022 earlier this week. The earlier spike had been driven by fears that the ongoing conflict with Iran could disrupt global oil supply routes,” he said.
Asian stocks are largely positive in early deals on Wednesday.
Ponmudi R, CEO of Enrich Money, said: Although equity markets staged a technical rebound on Tuesday, the underlying sentiment remains cautious as the deepening crisis in West Asia begins to influence global financial markets through higher energy prices, disruptions to key shipping routes, and shifting investor risk appetite. While the conflict remains geographically contained, its economic repercussions are increasingly being felt across global commodity and equity markets.
However, historical trends suggest that such corrections often create long-term investment opportunities rather than causing structural damage to the underlying economy. The Indian market continues to be supported by strong domestic consumption, rising participation from domestic investors, and a resilient long-term growth outlook, Ponmudi added. For long-term investors, market corrections triggered by global geopolitical events can present opportunities to accumulate fundamentally strong Indian companies at more attractive valuations.
Derivative trading also reflects a cautious mood.
From the derivatives perspective, the Put–Call Ratio (PCR) stands near 0.87, reflecting a cautious bias in the options segment, said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities. Options data highlights significant call open interest at the 24,500 strike with around 23.82 lakh contracts, marking it as a strong resistance level, while the 24,000 strike holds nearly 29.22 lakh put open interest, reinforcing it as a key support base. This positioning indicates the index may continue to trade within a broader range of 24,000–24,500 in the near term, he added.