Domestic markets are expected to open flat on Wednesday, indicates trading in Gift City. Nifty futures at Gift Nifty is ruling at 24,435 against Nifty futures Tuesday’s closing of 24,477.
Analysts expect volatility to increase ahead of F&O expiry on Thursday. Amidst result season, the action will be stock-specific, they added.
According to Rajesh Bhosale, Equity Technical Analyst, Angel One, Improved market sentiment has been driven by strong positive traction in individual stocks, where the banking sector has been the charioteer during the earnings season. However, some counters have felt the heat from missed earnings expectations. “Traders should be selective in stock picking to identify potential outperformers,” he advised.
Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said: After 8% fall from all-time high, Nifty is witnessing some pull back ahead of Diwali, as investors get into festive mood. “ Overall, we expect the markets to remain range bound amid uncertainty with regard to US elections to be held next week. However we could continue to see sector and stock specific action as more companies announce their quarterly earnings. Key results to watch out for tomorrow will be L&T, Tata Power, Dabur, AB Capital amongst others,” he added.
Trading in the F&O market signals a neutral trend.
The options market reveals a neutral sentiment with call and put activity nearing parity, said Dhupesh Dhameja, Technical Analyst, SAMCO Securities.
“Key open interest concentrations are at the 25,000-strike call (1.06 crore contracts) and the 24,000-strike put (86.18 lakh contracts). Notable trading activity spans the 24,500–24,800 call range and the 24,100–24,400 put range, underscoring strong resistance created by call writers (Bears) between 24,500 and 25,000, while support consolidates within the 24,000–24,400 range. Elevated call writing at the 24,500–25,000 levels highlights sellers’ positioning as strong resistance, while cautious put writers (Bulls) continue adding positions within the support range. The put-call ratio (PCR) has marginally increased from 0.91 to 0.93, maintaining a neutral stance. The “max pain” level is pegged at 24,500, marking a pivotal point that may influence the index’s next move, he said.
India VIX, a key volatility indicator, rose slightly by 1.57%, settling at 14.51. With VIX levels remaining below 15, the market’s inclination toward bullish momentum may strengthen as lower volatility attracts buyer interest, he further said.