Indian benchmark indices opened flat on Thursday with GIFT Nifty ruling at 24,100 level, signaling a flattish opening as traders remain cautious ahead of the weekend. The BSE Sensex declined 57.43 points to 77,061.94 in early trade before recovering to trade 29.75 points higher at 77,123.82, while the NSE Nifty dipped 31.6 points to 24,071.30 before moving 20.80 points up to 24,123.65. This follows Monday's strong recovery where the NSE Nifty 50 gained 0.37% to settle at 24,102 and the BSE Sensex advanced 0.38% to close at 77,094, reflecting cautious yet optimistic sentiment among investors. As per The Hindu BusinessLine, ahead of holiday (Muharram on Friday) and NSE monthly F&O settlement (on Tuesday), traders will go light on their position, contributing to the subdued opening. Asian markets are ruling sharply higher, led by Korea's Kospi and Japan's Nikkei, providing mixed signals for domestic markets.
Nifty found support exactly at the rising trendline formed by connecting multiple highs and lows on the hourly chart, providing a basis to expect a decent recovery in the near term. On the higher end, resistance is placed at 23,950–24,000, while on the lower end, crucial intraday support is placed at 23,700, below which serious selling might come. India VIX declined 4% to 13.39 levels, indicating easing volatility and improving risk appetite. Immediate support for the Nifty is placed in the 23,900-23,800 range, which coincides with the previous Monday's gap area and the 50-day EMA, while major resistance on the upside is placed near 24,600 levels, which aligns with the April high and the 200-day EMA. From a derivatives perspective, the setup has turned constructive with PCR at 1.18, reflecting a positive undertone. Option chain data shows substantial Put Open Interest at 24,000 and 23,500 strikes, reinforcing these levels as key support zones, while significant Call Open Interest is visible at 24,500 and 25,000 strikes may act as immediate resistance levels.
Wall Street ended lower overnight, with technology stocks coming under pressure. The Nasdaq Composite fell 1.32% and the S&P 500 declined 0.37%, dragged down by losses in major technology names including Alphabet, while the Dow Jones Industrial Average rose 0.29%, supported by gains in healthcare and industrial stocks. Asian markets were also subdued on Tuesday, with South Korea's Kospi tanking nearly 6%, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index all trading lower. Taiwanese equities touched fresh highs despite the broader regional weakness. Investors remain cautious amid growing expectations that the Federal Reserve could still deliver additional rate hikes later this year, adding to global uncertainty. As per The Hindu BusinessLine, Asian stocks are trading mixed with the battered Kospi's gained about 2% while Japan and Chinese markets slipped in early deal.
Foreign portfolio investors net bought shares worth ₹17.86 crore on Tuesday, marking a reversal from Monday's outflows of ₹635.91 crore, according to The Economic Times. Domestic Institutional Investors (DIIs) were net buyers at ₹680 crore, continuing to provide strong support to the markets. The Indian rupee ended modestly weaker on Tuesday as a churn in US rate expectations boosted the dollar to a one-year peak against a basket of peers, driving global equities lower and pressuring Asian currencies. From the 30-Sensex firms, Infosys, Tata Consultancy Services, HCL Tech, Tech Mahindra, Tata Steel and Hindustan Unilever were among the laggards, while Sun Pharma, Trent, ICICI Bank, Axis Bank and NTPC were among the winners. The mixed institutional flows reflect cautious investor sentiment as markets navigate global uncertainties and geopolitical developments.
Analysts say Indian equities are expected to trade sideways with a marginal negative bias in the near term amid weak global cues, continued Foreign Institutional Investor outflows, and uncertainty surrounding the proposed US-Iran ceasefire. Manish Gunwani, CIO – Equity, Bandhan AMC, said the long-term equity market return is expected to converge to 6–6.5% above inflation, with current valuations considered fair rather than distressed. Ajit Mishra – SVP, Research, Religare Broking Ltd, said given the current setup, consolidation in the index appears more likely in the near term, advocating a stock-specific approach favoring relative outperformers and selective buying in rate-sensitive sectors such as banking, financials, realty, along with pharma. Market sentiment may remain volatile over the next few sessions, with traders closely monitoring key support zones. The Nifty's rally over 4% in seven sessions had provided momentum before the current consolidation phase, with the index now finding support at key technical levels.
