The Indian stock market is set for a slightly positive opening on Wednesday, fueled by global cues and cautious optimism ahead of the US Federal Reserve’s interest rate announcement. The Gift Nifty showed a positive opening, trading at 26,140, or a premium of 50 points, from its previous Nifty futures close.
On Tuesday, benchmark indices ended slightly lower, with Sensex falling 150.68 points to 84,628.16 and Nifty 50 slipping 29.85 points to 25,936.20, maintaining its position above the 25,900 level.
Sensex faced selling pressure near 84,800, but recovered some losses by the close. Analysts expect intraday volatility to continue, suggesting a cautious approach for short-term participants.
Key resistance levels are placed at 84,800 and 85,000, while strong support lies near 84,200. A decisive breakout above 85,000 could take the index toward 85,500. On the other hand, a breakdown below 84,200 may invite further correction toward 83,700.
Nifty 50 formed a small candle with long lower shadows, suggesting indecision in the market. Despite the pause, analysts maintain the broader outlook to be bullish.
The formation of a doji candle shows short-term volatility, but the larger uptrend stays intact. Immediate support at 25,700 with resistance around 26,100. If the index can close above this level, it could rally toward 26,400-26,500.
Analysts from Choice Equity Broking and SBI Securities highlighted that momentum indicators also confirmed upside bias, with support at 25,700-25,800 and resistance near 26,050-26,200.
On Tuesday, Bank Nifty closed at 58,214.10, gaining 99.85 points, also forming a bullish candle. The index remains technically strong, supported by momentum indicators like RSI and MACD.
The support levels are at 57,700-57,480, and the resistance is at 58,450-58,600. A breakout of 58,600 could open the door to 59,000. The brokerages maintain an optimistic view, advising traders to utilize dips for fresh positions.
According to analysts, Wednesday's trade will be characterized by volatility and stock rotation. Sectors such as metals, PSU banks, and energy will likely outperform, while IT, FMCG, and pharma sectors are expected to remain subdued.
Market direction will depend on the Fed's policy statement, FII flows, and domestic earnings. Overall, analysts are expecting a mildly positive session with sideways consolidation being likely ahead of the next leg of an uptrend if key supports hold.
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