Domestic markets are likely to open on a cautious note and may remain lacklustre ahead of a public holiday on Wednesday. With the second quarter results season near its end, analysts said the focus will be on macro numbers. Markets are closed on Wednesday for Guru Nanak Jayanthi.
Emkay Global Research in a note said: The broad macro indicators reinforce our optimism around a cyclical recovery starting H2FY26, led by discretionary consumption. Strong festive season sales in key categories such as autos (eg, 2W sales +27% YoY over Sep to Oct-25) are reinforced by secondary data like an acceleration in credit growth to 11.5% and a 27% YoY growth in credit card spends in Sep-25.
Gift Nifty at 25,892 indicates a flattish opening.
The Morning Market Outlook by Ponmudi R, CEO of Enrich Money, says the Indian markets are expected to open on a steady to mildly cautious note, with consolidation likely to persist amid mixed global cues and strong resilience near key support levels. “Domestically, the undertone remains positive, supported by healthy institutional inflows and steady earnings momentum, even as bouts of volatility may continue within the broader range.”
Meanwhile, the India VIX, the volatility index, climbed 4.22% to 12.66, indicating heightened market volatility amid prevailing uncertainty. In the derivatives segment, open interest (OI) data highlighted the highest call writing at the 25,800 and 25,900 strike prices, while the maximum put OI was observed at the 25,700 strikes, suggesting strong resistance around the 26,000 marks.
Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Ltd., said “Overall, market sentiment remains cautiously optimistic, with traders awaiting a decisive close above 25,800 to confirm a continuation of bullish momentum. Sustaining above this key resistance zone will be crucial to drive the next leg of the uptrend in the near term.”
“Financial markets also remain supportive, with the rupee and long bonds stabilising after a rough 1-2 quarter spell – we think the worst is over. We remain constructive on the markets, with a Sep-26E Nifty target of 28,000 and discretionary consumption being our top OW,” Emkay Global said.