Domestic markets are likely to see a flat opening on Wednesday. However, analysts expect volumes to remain low, and the market may see a correction ahead of the bank holiday on Thursday. Markets will remain open on Thursday despite the Gudi Padwa holiday.
Gift Nifty around 23,650 indicates that Nifty may see a marginal gain of about 25-30 points at open. The muted start reflects a balance between supportive global cues and persistent macro uncertainties, said Hariprasad K, Founder, Livelong Wealth.
Gains in South Korea’s KOSPI and a steady performance in Japan’s Nikkei are lending support as Indian markets head into the open, while investors remain focused on Japan’s trade data and the US Federal Reserve’s policy outcome. While the Fed is widely expected to keep rates unchanged, the lack of clarity on the trajectory of future rate cuts continues to cap global risk appetite, he added.
Crude oil prices remain elevated amid ongoing geopolitical tensions in West Asia, which continue to disrupt energy markets. For India, sustained strength in oil remains a critical concern, given its implications for inflation, currency stability and corporate margins.
The near-term outlook suggests a range-bound market with a cautious bias, where global cues, crude oil movements and currency trends will remain the key drivers. A decisive breakout above resistance or clarity on global macro triggers will be essential for a sustained directional move, said Hariprasad.
Echoing similar views, Ponmudi R, CEO of Enrich Money, said: “Overall, the market is likely to remain event-driven in the near term. Stability in crude oil prices and easing geopolitical concerns could support further recovery, while any renewed escalation or persistent foreign outflows may keep volatility elevated.”
According to technical experts, the recent bounce back has turned short-term sentiment positive. Angel One in a note said the bounce extended for the second consecutive session, supported by follow-through buying after Monday’s “Piercing Line” bullish reversal formation. Over the past two sessions, the recent sell-off appears to have cooled off, with intraday dips getting bought into. Given the oversold setup, this bounce may extend in the near term. On the upside, the bearish gap left on Thursday near 23,850 is seen as the immediate resistance, followed by the 24,000 mark. On the downside, today’s low around 23,350, followed by 23,000, is expected to act as key support. “Traders are advised to keep a close watch on these levels and plan trades accordingly. That said, one should avoid complacent positioning as the broader undertone remains weak, while ongoing global uncertainties continue to influence market sentiment,” it cautioned.