Indian equity markets are expected to open Wednesday’s session on a cautious note after Tuesday’s sharp rally. Early cues from GIFT Nifty suggest a flat-to-mild start for benchmark indices, reflecting a pause after strong gains driven by the India-US trade agreement. The index was trading near 25,819, just 2 points above its previous Nifty futures close.

On Tuesday, the Sensex jumped 2,072.67 points or 2.54% to close at 83,739.13, while the Nifty 50 surged 639.15 points or 2.55% to end at 25,727.55. The midcap and smallcap indices also increased by nearly 3%.

The rally followed the announcement of the India-US trade deal, which eased the tariff to 18%, improving near-term sentiment.

Market Tone and Global Cues

The trade agreement creates positive market conditions, yet global markets remain mixed, making traders cautious in their selections. 

Analysts believe the underlying structure of the Indian market remains positive, but near-term consolidation cannot be ruled out after the sharp upward move. 

The current structure requires assessment of key support levels as traders need to process their recent market advantages.

Sensex Outlook

The short-term trend for Sensex shows positive, however, traders need to implement tactical approaches. 

The immediate support level stands at 83,000, while 82,500 serves as the next, and resistance can be seen at 84,300-84,500. 

A dip-buying approach, with partial profit booking near resistance, will provide better results for the current market conditions.

Nifty 50 Outlook

Derivatives positioning suggests a well-defined range for Nifty 50, with heavy put writing around 25,500 and notable call writing near 26,000. 

The current market structure will continue to show range-bound movement until a decisive breakout happens. 

The index maintains its positive trend as it stays above 25,600, enabling a potential upward movement toward the 26,000-26,300 if the momentum stays strong. 

Adding to this view, improving momentum indicators, including a fresh MACD buy signal and a recovery in RSI, suggest strengthening bullish undertones as long as volatility remains contained.

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Bank Nifty Outlook

The Bank Nifty closed at 60,041.30 after gaining 1,422.30 points or 2.43% on Tuesday, while forming a bearish candle on its daily chart. 

The 59,600-59,500 zone will act as a key support area for the index. A break below this may invite weakness toward 59,000.

The immediate resistance is at 60,300 to 60,400, and a break above this range will restore upward price movement.