Indian equities set for a cautious start as GIFT Nifty points lower
The Indian stock market is expected to open lower on Wednesday, ending a four-day rally, while Asian and U.S. markets showed mixed performance amid midterm election uncertainty.
Indian equities are likely to open on a weaker note on Wednesday, with the GIFT Nifty trading around 23,718, down about 0.17% from the previous close, ending a four-day winning streak.
"Indian equities may see some consolidation after a sharp four-session rally, with investors likely to lock in profits as the market assesses the sustainability of the recent rebound. However, softer crude oil prices and signs of improving foreign investor participation are providing a more supportive backdrop," said Ponmudi R, CEO of Enrich Money.
On Tuesday, the BSE Sensex rose 1.62% to close at 76,917.85 and the NSE Nifty gained 1.58% to finish at 23,810.85, both supported by lower crude prices and fresh foreign fund inflows.
"Indian equities extended their winning streak to a fourth consecutive session, with broad-based buying lifting the benchmark indices and sustaining the market’s recovery," Ponmudi added.
Technical analysts note that the Sensex faces immediate support around the 76,000-76,300 zone, with resistance near 77,000-77,200. A breakout above 77,200 could trigger further upside, though overbought signals suggest some profit-taking may occur.
"Looking ahead, the Sensex is likely to maintain a sideways to bullish bias, backed by four consecutive sessions of gains," said Sachin Gupta, VP of Technical Research at Choice Equity Broking.
For the Nifty, analysts highlight that it has reclaimed the 23,800 level and is testing the 200-day moving average as the next hurdle.
"The Nifty50 has retraced nearly 61.80% of its recent decline and has successively reclaimed its key EMAs," noted Osho Krishnan, Chief Manager of Technical & Derivative Research at Angel One.
U.S. markets closed mixed on Tuesday, with the Dow Jones down about 200 points, the Nasdaq 100 up 0.7%, and the S&P 500 gaining 0.4% as investors awaited midterm election results.
In Asia, South Korea’s Kospi rose above 5,800, gaining 2.82%, while Japan’s Nikkei slipped 1.1% after a holiday break. Taiwan’s Taiex opened higher, up 0.38%.
Investors are advised to monitor global cues, crude oil prices, corporate earnings and foreign fund flows for further market direction.