
Indian benchmark indices are signaling to open on a positive note on Wednesday, bucking the mixed cues from the global markets. However, weakness in dollar and crude oil may support the momentum at Dalal Street. Traders shall await key economic data and big bang listing on HDB Financial Services.
Nifty futures on the NSE International Exchange traded 39.70 points, or 0.15 per cent, higher at 25,683, hinting at a positive start for the domestic market on Wednesday. Asian stocks slipped on Wednesday. Japan's Nikkei dropped nearly a per cent, while South Korea's KOSPI was down 1.3 per cent. Hong Kong's Hang Seng added half a per cent.
Market participants await the US PMI and Fed Chair Powell’s comments for cues on future rate direction lined up, said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services. "Markets are likely to remain firm, supported by strong institutional flows and policy support," he said.
Investors navigated a choppy session as the Nasdaq and the S&P 500 closed lower on Tuesday, dragged down by weakness in large-cap tech stock. Dow Jones Industrial Average rose 400.17 points, or 0.91 per cent, to 44,494.94. The S&P 500 lost 6.94 points, or 0.11 per cent, to 6,198.01 and the Nasdaq Composite lost 166.84 points, or 0.82 per cent, to 20,202.89.
The US dollar hunkered near the lowest since February 2022 against major peers on Wednesday. The dollar index was at 96.649. In commodities, spot gold eased to $3,332.19 per ounce, after surging 1 per cent in the previous session.
Gold prices edged lower on Wednesday as investors awaited US payroll data. Spot gold was down 0.2 per cent at $3,330.68 per ounce The yellow metal is up 27 per cent this year on safe-haven flows.
Buoyancy in global markets, along with stable domestic cues suggests that the prevailing trend is likely to continue, said Ajit Mishra, SVP of Research at Religare Broking. "We reiterate the 'buy on dips' view, with a strong emphasis on stock selection. Participants should adopt a cautious stance on the broader market given the overbought conditions in select pockets."
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 1,970.14 crore on Tuesday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 771.08 crore on a net-net basis.
Caution prevailed ahead of global trade cues, but strong manufacturing data and selective IPO strength helped keep sentiment afloat, said Vikram Kasat, Head of Advisory at PL Capital. "Focus will remain on US-China trade updates, macro data releases, and early signs from the Q1 earnings season," he said.
Nifty & Sensex outlook
"The near term trend of Nifty remains positive. consolidation/weakness from here could find strong support around 25,400-25,300 levels, where one may expect sharp bounce from the lows, said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. "A decisive move above the high of 25,700 could open the next upside targets of around 26,000-26,200 levels," he said.
Shrikant Chouhan, Head of Equity Research at Kotak Securities believes that the current market texture is non-directional, with traders waiting for either side to make a breakout. For the bulls, the immediate breakout zones are 25,600/83,900. A successful breakout above these levels could push the market toward 25,700–25,750/84,200–84,400. "A dismissal of 25,470/83,500 could accelerate selling pressure," he said.
Nifty Bank outlook
Bank Nifty formed a high wave candle on the daily chart for the second session in a row suggesting a phase of time-wise consolidation amidst stock-specific traction, said Bajaj Broking. "The index is perched above its immediate support zone of 57,000–56,800. The index is likely oscillating within a broader consolidation zone of 56,000–57,600," it said.
Nifty Bank has sustained near the peak zone with bias maintained strong having the important support near 56,000 zone which needs to be sustained and, on the upside, with the bias improving can expect for fresh targets of 58,500 and 60,000 levels in the coming days, said Vaishali Parekh, Vice President of Technical Research at PL Capital