The Indian stock market is expected to open higher on Wednesday, October 15, following the mixed global trends and positive signals from the Gift Nifty. The market remains optimistic as investors are taking positions before the release of significant corporate earnings and global macro data.
The Gift Nifty was at 25,287, up by 81 points compared to the last Nifty futures close, signaling a slightly positive start for the domestic benchmarks.
The markets ended lower after intraday volatility on Tuesday. The Sensex fell by 297.07 points (0.36%) to close at 82,029.98, while the Nifty 50 dropped by 81.85 points (0.32%) to close at 25,145.50.
The Nifty 50 formed a bearish engulfing candle on the daily chart, indicating a potential near-term weakness. The index's failure to maintain its position above 25,200 shows hesitation among traders, with major support at 25,000-24,900.
Nifty rebounded from its 21-day moving average near 25,060. A sustained breakout above 25,300 may lead to 25,500.
Resistance is seen at 25,350, and support at 25,050, adding that improved global trade sentiment, especially the recent US-China discussions, may support a short-term rebound.
The Sensex also showed signs of short-term consolidation after slipping below the 82,100 mark on Tuesday. The support is near 81,700-81,500, while the immediate resistance is around 82,300-82,500.
Analysts believe that the index could trade with a positive bias as long as it sustains above 81,500. A move above 82,500 could trigger fresh momentum toward 83,000, whereas a breakdown below 81,500 might open room for mild profit booking.
On Tuesday, the Bank Nifty index fell 128.55 points (0.23%) to settle at 56,496.45, ending the day with a small bearish candle with a long lower shadow, suggesting buying interest at intraday lows.
The index remains above key moving averages despite the pullback, indicating strength. The resistance is at 56,900, while the support is around 56,200-56,300.
The index is expected to move between 55,800 and 57,00,0 with the overall sentiment being positive. A break above the 57,000 level would trigger a rally toward 57,600.
Major sectoral indices were in red on Tuesday, with the pharma, consumer durables, metals, media, and PSU bank sectors leading the way, each fell between 1% and 1.5%.
However, AI and data-center related stocks remained under focus after Google announced a $15 billion investment in a large AI hub in Visakhapatnam, which would be its biggest project in India.
Key results are due today from Axis Bank, HDFC Life, HDFC AMC, L&T Finance, HDB Financial, and Angel One, which could indicate the near-term market direction.