Indian Markets Remain Cautious Ahead of Key Events
Indian stock markets opened on a flat note today as the Nifty 50 dipped 0.15% to 24,604.45 points, and the BSE Sensex slid 0.06% to 81,476.76 points. With the expiry in the Futures & Options (F&O) segment scheduled for today, market experts anticipate heightened volatility.
Consolidation Continues Amid Expiry Volatility
Market expert Ajay Bagga noted, “The Indian markets are consolidating in a tight range. Expect some volatility on the back of the expiry. With the Fed rate cut more or less a done deal, the next catalysts for Indian markets will be today’s inflation data, expected to show a month-on-month drop in the CPI index.”
The U.S. Federal Reserve’s upcoming rate decision is nearly certain, with markets pricing in a 98% chance of a rate cut following inflation data that met expectations. This has bolstered global sentiment and could support Indian equities in the medium term.
Sectoral Highlights
Within the Nifty 50, 23 stocks gained while 27 declined in early trading. Notable gainers included Tech Mahindra, Bharti Airtel, TCS, and Wipro, while Apollo Hospital, SBI Life, BPCL, Trent, and Titan were among the top losers.
Sector-wise, Nifty Bank, Nifty IT, Nifty Metal, Nifty Pharma, and Nifty Healthcare indices registered gains, while other sectors lagged.
Technical Analysis
Akshay Chinchalkar, Head of Research at Axis Securities, highlighted that “indecision on the Nifty continues as resistance at 24,700 holds strong. A short-term ‘pennant’ pattern has formed, indicating potential for an upside breakout targeting the 24,800–25,000 zone. However, support at 24,500 needs to hold for this view to materialize.”
FII and DII Activity
Foreign Institutional Investors (FIIs) sold equities worth ₹1,012 crore on Wednesday, while Domestic Institutional Investors (DIIs) purchased equities worth ₹2,000 crore, reflecting continued domestic support amid global uncertainties.
Global Market Cues
Asian markets showed strength, with Japan’s Nikkei 225 surging 1.28%, Taiwan’s Weighted Index rising 0.93%, Hong Kong’s Hang Seng up 0.68%, and South Korea’s index recovering with a 0.35% gain.
Outlook
The Indian markets are expected to remain range-bound, with volatility likely to spike due to the F&O expiry. Eyes are now on domestic CPI inflation data and further global cues to determine market direction. Analysts anticipate consolidation to continue, followed by a potential year-end rally if key support levels are maintained.
