Stock markets are poised to open on a positive note on Wednesday amidst mixed global cues. Analysts predict that the momentum of recovery will persist, keeping the markets in a consolidation phase. The SGX Nifty at 22,960 indicates a favorable opening for the Indian markets with an expected gain of around 75 points. The Nifty closed at 22,834 on the previous trading day, and if the trend continues, there could be a potential push above the psychological level of 23,000, last reached on February 19.
Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services, mentioned that investor sentiment remains positive due to improving global market conditions and growing optimism regarding a potential truce between Russia and Ukraine, with a scheduled meeting between the U.S. and Russian presidents. He also highlighted India’s better-than-expected trade deficit, China’s increasing consumption, and value buying at key support levels as factors boosting market confidence.
Foreign portfolio investors turned positive for the first time in recent days, buying shares worth approximately ₹700 crore as per provisional data. Analysts anticipate a slowdown in FPI selling with the possibility of a return as buyers in the near future.
According to Bay Capital, a leading India-focused investment management firm, India’s growth outlook surpasses that of other global markets. As global investors diversify away from China due to geopolitical risks, India is expected to attract more capital given its stable economic environment, growing digital economy, and thriving entrepreneurial landscape. The firm believes that India is well-positioned to deliver strong economic growth and attractive investment returns for patient, long-term investors.
In terms of derivatives trading, analysts indicate a positive bias. Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities, pointed out that the derivatives data reflects a bullish undertone, with put writers showing confidence over call writers, indicating optimism among market participants. Notably, there is a significant open interest buildup at the 23,000-call strike, indicating a formidable resistance level, while heavy put writing at the 22,500 level suggests solid support, reinforcing the bullish trend. The rising Put-Call Ratio (PCR) further signifies increasing bullish sentiment as traders initiate new long positions.
Technical indicators also support a positive bias for the market. Both Nifty and Sensex briefly breached the 21-day EMA, a key resistance level, which had been limiting gains for an extended period. The Nifty 50 is expected to extend its gains towards 23,000–23,100, with a potential breakout above this range pushing the index higher towards 23,500–23,800. On the downside, 22,350–22,300 serves as an immediate support zone, providing a strong base for any pullbacks.
Meanwhile, equities across the Asia Pacific region traded around 0.5 per cent higher in early deals on Wednesday.
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