Market Anticipates Positive Opening
Indian equity benchmark indices are poised for a higher opening on Wednesday, driven by a significant rise in GIFT Nifty futures. Trading on the NSE International Exchange, GIFT Nifty futures advanced 187.40 points, or 0.76 percent, to 24,743, signaling a positive start for domestic markets.
Investor confidence has been bolstered by a fresh round of strong corporate earnings reports and an improving global risk appetite. Traders are particularly focused on the Reserve Bank of India's (RBI) monetary policy decision, expected later today, which could influence market direction.
Global Cues and Key Economic Data
Global markets provided a supportive backdrop. US stocks closed higher on Tuesday, fueled by strong earnings from AI-related companies, while crude oil prices and Treasury yields softened amidst hopes for a resolution in the Iran conflict. Asian markets also saw gains on Wednesday, with South Korea's KOSPI surging nearly 4.5 percent and Japan's Nikkei rallying over 3.35 percent.
Beyond the RBI's announcement, investors will closely monitor upcoming US jobs data and the UK and US Composite and Services PMI figures for further economic indicators. Crude oil prices remained subdued, with Brent crude easing to $79.02 a barrel and US crude dropping to $75.35, contributing to positive market sentiment.
Expert Outlook on Nifty, Sensex, and Nifty Bank
Nifty50 and Sensex Analysis
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, 24,450/78,100 and 24,500/78,000 are critical support zones for Nifty50 and Sensex, respectively. A sustained trade above these levels could see the indices retest 24,800-24,850/78,800-79,000. Conversely, a slip below 24,450/78,100 might accelerate selling pressure, potentially leading to falls toward 24,300-24,250/77,700-77,500.
Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, noted that Sensex formed a bearish candlestick after a gap-up opening, slipping below its 200-Day EMA, yet maintaining a positive short-to-medium-term trend. Immediate support for Sensex is identified between 77,700–78,000, with 78,900–79,200 acting as a key resistance zone. For Nifty, Hitesh Rathi of Angel One sees immediate support in the 24,450–24,350 range, with 24,750–24,800 as the immediate resistance area. A decisive move above 24,820 is needed for a sustained breakout.
Nifty Bank Performance
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, highlights that Nifty Bank continues to trade above its short-term and long-term moving averages, indicating an underlying positive trend. However, momentum indicators suggest a sideways bias in the near term. The 58,200-58,300 zone is a crucial resistance; a break above it could lead to 58,800 and 59,200. On the downside, 57,400-57,300 is expected to serve as a strong support band.
Vatsal Bhuva, Technical Analyst at LKP Securities, added that Bank Nifty has found support near its 200-DMA, signaling a gradually bullish undertone. Immediate support is at 57,450, while 58,000–58,100 is the first hurdle, followed by 58,400. A 'buy-on-dips' strategy remains favorable, though the RBI's policy announcement could introduce volatility.
FII-DII Investment Flows
Provisional data from the NSE revealed that Foreign Portfolio Investors (FPIs) were net sellers of domestic stocks on Tuesday, offloading shares worth Rs 2,446.47 crore. In contrast, Domestic Institutional Investors (DIIs) showed confidence in Indian equities, turning net buyers to the tune of Rs 936.14 crore.