Sensex, Nifty may open weak amid mixed global cues

Domestic markets are expected to see a flat to negative opening on Thursday, which will also see the settlement of F&O monthly contracts on the NSE. According to analysts, the continuous rally, fuelled by foreign portfolio investors, may see some moderation due to profit-taking. Experts say the focus has now shifted to the performance of India Inc. So far, the results are on expected lines or slightly better than expected. The accommodative signals from the US administration has been welcomed by market participants, they added.

Emkay Global Research, in a mid-week market review report, said: The market has rallied smartly after the Trump pause, with Financials leading the way. “We are not yet out of the woods on tariffs, but we reiterate that the final outcome is likely to be a much weaker version of the April 2 announcements. We see two key drivers from the market going forward: the pace of bilateral trade deals announced by the US, with China in focus; and earnings momentum for India, where the risk to the FY26 Nifty EPS is a moderate 2-3%, in our view”

Gift Nifty at 24,260 indicates a weak opening. However, equities across the Asia-Pacific region traded mixed with the Nikkei and Australian markets edging up even as the Korea and Taiwan markets are down in early deals on Thursday. Overnight, the US stocks ended in the green, but surrendered most of their earlier gains.

Mandar Bhojane, Research Analyst, Choice Broking, said: Going forward, the market direction will depend on global cues, quarterly earnings, and institutional flows. “With most sectors participating in the rally and Bank Nifty trading at record highs, the market breadth remains supportive, but profit-booking and range-bound movement may dominate in the near term before the next leg higher,” he said.

Derivatives trading also present a positive outlook for market, said experts.

Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said: The derivatives landscape maintains a moderately bullish posture. “Put writers continue to outpace call writers, suggesting bullish confidence. Heavy open interest (OI) accumulation at the 24,500 strike (1.04 crore contracts) indicates a near-term ceiling, while significant put writing at the 24,000 strike (1.35 crore contracts) reinforces a solid base just below current levels. This positions the 24,350–24,500 range as a critical resistance cluster. 

A notable observation is the gradual migration of call writing to higher strike levels, reflecting an increasingly bullish outlook. 

Meanwhile, the Put-Call Ratio has marginally declined from 1.06 to 1.04, still reflecting a favourable bias. Max Pain remains anchored at 24,100, signalling that traders are positioning for consolidation just below current prices, though overhead resistance persists, he added

However, India VIX climbed 4.79% to 15.96, reflecting reduced concerns around global volatility, but still suggesting the possibility of sharp intraday swings. With VIX staying above the 15 psychological mark, risk management remains crucial in this environment, as sudden reversals could still emerge.

Published on April 24, 2025