Domestic makes are likely to open flat but on a positive note on Thursday, amid strong global cues. All eyes are on the Nifty and Sensex as the current values are tantalisingly close to their previous all-time highs. Sensex had hit a previous high at 85,801.70 and Nifty 26,246.65 a year ago. Following gains at the US stocks overnight, most equities across the Asia-Pacific region are up in early deals on Thursday.
Gift Nifty is ruling at 26,448, indicating that the index will gain 75 points at open. The focus will also be on the behaviour of foreign portfolio investors. According to provisional data, FPIs were net buyers by nearly ₹5,000 crore. If the trend sustains, analysts expect the market to sustain the gain and even the small-cap and mid-cap stocks that are under pressure will see some interest.
However, weakening rupee is a cause for concern.
Ponmudi R, CEO of Enrich Money, said: Global equity markets have extended their gains, buoyed by growing expectations of interest-rate cuts by the US Federal Reserve. Major US indices — including the S&P 500, Dow Jones, and Nasdaq — posted another session of solid advances as softer Treasury yields and renewed policy optimism strengthened risk appetite. This upbeat sentiment has carried into today’s global trade, with Asian markets opening higher. Overall, the global backdrop remains supportive, setting a constructive tone for Indian equities ahead of the opening bell.
Derivative set-up also presents a positive bias.
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said: The derivatives set-up reflects a distinctly positive undertone, with put writers aggressively adding exposure across lower and at-the-money strikes. Concurrently, call writers have been unwinding positions and shifting toward higher strikes — indicating a clear upward bias.
“A sizeable call OI build-up of nearly 81.62 lakh contracts at the 26,500 strike highlights this level as a major resistance for the index. On the downside, a strong put OI accumulation of about 1.73 crore contracts at the 26,000 strike reinforces this region as a key support base,” he added.
The Put-Call Ratio (PCR) has jumped to 1.55 from 0.73, underscoring a significant improvement in sentiment. However, as the PCR enters the over-extended territory, mild profit-booking cannot be ruled out in the short term, he cautioned.
Volatility remained contained, with India VIX near 12, signalling a stable market environment. The combination of supportive global cues, improving liquidity expectations and sector-wide participation is helping the market recover after recent weakness. They maintain a buy-on-dips approach, but highlight that the Nifty now faces a key resistance zone around 26,200–26,277. Sustained trade above this level could open the path toward 26,400–26,500, while support lies at 25,900 and then 25,800.