Indian equity markets seemed set to carry forward their positive momentum from the previous session into Wednesday's trading. The BSE Sensex rang the opening bell this morning near 84,350, jumping 71 points, and the NSE Nifty50 climbed 41 points to inch closer to 26k, as of 9:15 AM.
The robust sentiment was visible in Wednesday’s pre-open session as well. As of 9:01 AM, the Sensex was trading at 84,339.67, up 65.75 points or 0.08 per cent, while the Nifty stood at 25,967.95, higher by 32.80 points or 0.13 per cent, indicating a steady start to the day.
On the 30-share Sensex, the top gainers included stocks like M&M, Tata Steel, Titan, Maruti, and SBI. Meanwhile, the laggards included stocks such as Eternal, Trent, HCL Tech, BEL, and UltraTech Cement.
Notably, both benchmarks closed higher for a third consecutive session on Tuesday, extending their upward run on the back of firm global cues and optimism surrounding the India-US trade agreement. However, signs of profit-booking at elevated levels suggested investors remain selective as valuations inch higher.
The sustained rise reflects improving risk appetite, with investors drawing confidence from easing trade tensions and stable global markets.
Trade Deal Optimism And FII Support
Domestic equities continued to find support from progress on the India-US trade agreement and positive cues from key Asian markets. According to market experts, a revival in foreign institutional investor (FII) inflows has further strengthened sentiment.
“Domestic equities continued their upward momentum, supported by the US trade agreement and positive cues from key Asian markets. A strong resurgence in FII inflows, coupled with rupee appreciation, is further bolstering the investor sentiment, although intermittent profit-booking was visible across sectors,” said Vinod Nair, Head of Research, Geojit Investments Ltd.
He added that with tariff-related concerns largely easing, the near-term direction of the market will depend heavily on third-quarter earnings, which have so far been mixed and below expectations. Investors are closely watching the combined impact of recent fiscal and monetary measures aimed at reviving earnings momentum in the coming quarters.
Technical View
From a technical perspective, caution remains warranted. “Technically, after a promising uptrend, the market has formed a Doji candle pattern on the daily charts, indicating indecisiveness between the bulls and bears.”
Shrikant Chouhan, Head Equity Research, Kotak Securities, said, “We are of the view that the short-term market outlook remains positive, but there could be a quick intraday dip if the index slips below 25,900/84100. Below this level, the market could retest the levels of 50 day SMA (Simple Moving Average) or 25,800-25,750/83700-83500. On the higher side, 26,000/84500 would be the immediate resistance zone for the bulls. A successful breakout above 26,000/84500 could push the market up to 26,100-26,150/84800-85000.”
The formation of a Doji pattern suggests a pause in momentum, with the market awaiting fresh triggers before attempting the next decisive move.