Domestic markets are likely to open on flattish to positive note on Thursday amid mixed global cues. Gift Nifty at 23130 signals a flattish opening.
Despite the minimal price alteration on the closing basis on Wednesday, the undertone portrays a bleak stature for Indian equities. Decoupled with the global developments, the initial and intensified sell-off in the benchmark index depicts lower confidence among the Bulls, said Osho Krishnan, Sr. Analyst, Technical & Derivatives of – Angel One. “The current market landscape presents significant challenges, characterised by volatility and uncertainty. In this context, it is crucial to exercise caution and resist the temptation to make impulsive decisions. Until a more stable pattern of buying emerges, implementing robust risk management strategies is essential to safeguard investments and navigate this turbulent environment effectively,” he added.
Market sentiment remained cautious amid concerns over U.S. tariffs, Fed Chair Powell’s hawkish stance on interest rates, and persistent FII outflows, said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd..
“Investors will closely track Prime Minister Modi’s two-day U.S. visit, where discussions are expected to cover key strategic issues, including trade, defence, economic cooperation, and immigration policies with President Donald Trump. Additionally, the focus will be on the final leg of corporate earnings, with Hindalco and United Breweries among the key companies set to report results tomorrow,” he added.
According to analysts, the meltdown and volatility in mid and small-cap stocks are routine in nature and no cause for worry.
Abhishek Jaiswal, Fund Manager at Finavenue, said: “The latest quarterly data reaffirms that small-cap stocks have not only outperformed large caps in market momentum but also on fundamental metrics. However, small caps tend to move sharply in both directions, making valuation and liquidity key considerations for investors. A well-balanced portfolio with a strategic allocation to both large and small caps ensures sustainable, less volatile returns.”
To navigate this dynamic space, investors must closely track government policies, company earnings calls, quarterly results, and major global economic developments. These factors shape market trends and provide crucial insights. Ultimately, the foundation of wealth creation lies in disciplined entry valuations and a well-defined investment horizon, he further said.
Trading in futures and options segment signals bearish outlook
Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities, said: Derivative data exhibits a bearish tilt, with call sellers holding the upper hand over put writers, signalling shifting control in favour of the bears. “The 23,500-strike call saw a sharp spike in open interest (1.24 crore contracts), cementing it as a major resistance level. Conversely, put writing at the 22,500-strike (1.16 crore contracts) signals strong downside support. Fresh call writing across the 23,100–23,500 strikes further strengthens overhead resistance, while put unwinding at lower strikes suggests a realignment toward bearish sentiment. The Put-Call Ratio (PCR) climbed to 0.63 from 0.53, indicating a bearish market sentiment. However, the ‘Max Pain’ level at 23,200 suggests limited downside potential, despite the heightened volatility,” he added.
India VIX, the market’s volatility gauge, edged up 0.17% to 14.89, indicating a slightly heightened sense of uncertainty. However, with VIX still hovering below the key 15-mark, the broader sentiment remains cautiously optimistic, though with a measured approach.
