Domestic markets are likely to open on flat to negative note on Wednesday as global stocks remain under pressure. Gift Nifty at 23,865 provides little cues for market direction. Ahead of holiday (Muharram on Friday) and NSE monthly F&O settlement (on Tuesday), traders will go light on their position, analysts said.
Ponmudi R, CEO of Enrich Money, said Indian equity markets are expected to trade with a cautious undertone as improving sentiment stemming from progress in the U.S.–Iran peace negotiations is being offset by weakness in global technology stocks and concerns over a more hawkish U.S. Federal Reserve. “Investor sentiment remains mixed, with renewed pressure on global equities following a sharp sell-off in U.S. technology shares amid valuation concerns and uncertainty over future spending trends, while expectations of prolonged higher interest rates continue to weigh on risk appetite,” he said.
Meanwhile Asian stocks are trading mixed. The battered Kospi’s gained about 2 per cent while Japan and Chinese markets slipped in early deal.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in, said The sharp decline in benchmark indices on Tuesday suggests profit booking and a rise in near-term caution among market participants. ?”Market sentiment may remain volatile over the next few sessions, with traders closely monitoring key support zones. While the broader long-term trend remains intact, the near-term structure has weakened. Traders are advised to remain selective, maintain disciplined risk management, and wait for signs of stability before initiating aggressive long positions,” he advised.