India’s benchmark indices, Sensex and Nifty, are expected to open moderately lower on Thursday amid mixed global cues. While US stocks maintained their winning streak overnight, equities across the Asia Pacific region are down in early trading. However, analysts expect the market to remain in a consolidation phase due to value buying at lower levels, especially in the mid-cap and small-cap space.
Osho Krishnan, Sr. Analyst, Technical & Derivatives of – Angel One, said, Recently, there has been a noticeable trend of buying on dips, and any positive global developments are likely to boost bullish sentiment. “Therefore, it is advisable to seek opportunities to take advantage of these dips and to accumulate quality stocks in a staggered manner,” he added.
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Gift Nifty at 22,910 indicates a weakness of about 50 points at open.
Markets are expected to remain stock-specific, with a focus on global cues and upcoming domestic triggers, said Mandar Bhojane, Research Analyst, Choice Broking.
Trading in the derivative market signals a narrow range, said analysts.
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Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities, said: Derivatives data reflects a mildly bearish undertone, with call sellers retaining an upper hand over put writers, suggesting cautious optimism among market participants. A notable surge in open interest at the 23,500-strike call (1.22 crore contracts) establishes it as a formidable upside hurdle. On the downside, strong put writing at the 22,500 strike (88.68 lakh contracts) underscores firm support at lower levels.
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A ‘Buy on Dips’ approach remains favourable, given the current market structure and ongoing uncertainties. Immediate resistance is noted at 23,200, while key support rests at 22,800. A decisive breakout beyond this trading range will be crucial in determining the market’s next directional trend, he added.