Stock markets are expected to open positively amid mixed global cues on Wednesday. According to analysts, the recovery momentum will continue, and markets will remain in consolidation mode. Gift Nifty at 22,960 signals a positive start for Indian markets and a gain of about 75 points at the opening. Nifty closed at 22,834 on Tuesday. If the trend sustains any vigorous buying, the latter could push the index above the psychological 23,000, which it last saw on February 19.
Vishnu Kant Upadhyay, AVP – Research & Advisory, Master Capital Services, said: Investor sentiment remained upbeat, driven by improving global market conditions and rising optimism over a potential truce deal between Russia and Ukraine, as the U.S. and Russian presidents are scheduled to meet on Tuesday. Additionally, India’s better-than-expected trade deficit, China’s consumption boost, and value buying at crucial support levels further bolstered market confidence.
For the first time in a few days, foreign portfolio investors turned positive. According to provisional data, they bought shares worth about ₹700 crore. Analysts expect a slowdown in FPI selling, and some believe FPIs will soon return as buyers.
According to a premier India-focused investment management firm, Bay Capital, India’s growth trajectory is unmatched globally. As global investors move away from China due to geopolitical risks, India is set to capture more capital, driven by its stable economic environment, growing digital economy, and entrepreneurial ecosystem. The firm believes India is poised to deliver robust economic growth and significant investment returns for patient, long-term investors, it added.
Siddharth Mehta, Founder & CIO of Bay Capital, commented, “Institutional investors are reallocating capital towards India as geopolitical risks surrounding China grow. While China’s valuations may appear attractive, its long-term uncertainty makes India a more compelling choice. India’s youthful population, rapid digital adoption, and thriving entrepreneurial ecosystem make it an exceptionally strong long-term investment destination.”
Derivative trading also signals positive bias, said analysts.
Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities, said, Derivatives data highlights a firm bullish undertone, with put writers aggressively strengthening their hold over call writers, showcasing optimism among market players. A massive open interest buildup at the 23,000-call strike (1.34 crore contracts) underscores it as a tough resistance. Meanwhile, heavy put writing at the 22,500 level (1.27 crore contracts) signals solid support, further validating the bullish trend. The 22,500–22,700 range has seen substantial put accumulation, reinforcing it as a critical demand zone, he said, adding “The Put-Call Ratio (PCR) has climbed from 1.02 to 1.42, reflecting an increasing bullish sentiment as traders initiate fresh long positions. Furthermore, the Max Pain level at 22,700 suggests that bulls are working to neutralize selling pressure, ensuring a smoother upside trajectory.”
Technical indicators also point to a positive bias, it added.
“ Both Nifty and Sensex briefly surpassed the 21-day EMA, a key resistance level that had restricted gains for an extended period. The Nifty 50 is expected to extend its gains toward 23,000–23,100, and a decisive breakout above this zone could propel the index further toward 23,500–23,800. On the downside, 22,350–22,300 remains the immediate support zone, providing a strong cushion for any pullbacks,” said Upadhyay.
Meanwhile, equities across the Asia Pacific region were up around 0.5 per cent in an early deal on Wednesday.