are expected to open on a flat to mildly positive note on Friday, with early indications from Gift Nifty hovering around the 23,200 mark. Crude oil prices fell after Prime Minister Benjamin Netanyahu said that Israel will not attack Iran’s energy infrastructure anymore and that the war will end sooner than expected.
These statements helped improve market sentiment and revived buying in early deals on Friday across major Asian markets. Japan’s markets are closed for a holiday today, while ’s Kospi inched up. Chinese markets are also up in early trade, while Australian stocks are flat.
Hariprasad K of Livelong Wealth said weak global cues may continue to weigh on overall sentiment. However, the modest decline in crude oil prices is likely to offer some near-term support, helping to stabilise markets in early trade.
Given the mixed global cues and easing oil prices, markets may attempt a mild recovery in early trade. However, elevated volatility, ongoing geopolitical risks, and stock-specific pressures are likely to keep sentiment cautious, with a focus on selective participation rather than broad-based risk-taking, he further said.
According to Angel One, traders should remain cautious in the current environment, focusing on disciplined risk management and avoiding aggressive positioning. “Maintaining lighter positions is advisable until stability returns. It is important to closely track global developments and institutional flows, as these factors are likely to drive near-term market direction,” it added.
Derivative trading also signals a bearish undertone.
Momentum indicators remain bearish, with RSI once again slipping back into oversold territory after facing rejection near 40, while India VIX has surged above 20 (+21.79 per cent), signalling heightened volatility and risk aversion, said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
In the derivatives segment, the put-call ratio at 0.69 reflects a bearish undertone, with strong call writing at 23,300 and put writers shifting toward 23,000, marking it as the immediate support. “Unless the index reclaims 23,400–23,600, the outlook remains negative, with sell-on-rise strategies likely to dominate amid volatile market conditions,” he added.
“India VIX continues to trade above 22 levels, reflecting persistent uncertainty linked to geopolitical developments,” said Hariprasad. While volatility may remain high in the near term, any signs of de-escalation could trigger a sharp decline in VIX, leading to rapid compression in option premiums, he added.