Sensex, Nifty set for tepid opening amid FPI selling and global uncertainty

Indian benchmark indices, Sensex and Nifty, are expected to open on a flattish-to-weak note on Thursday. It appears there is no respite from FPI selling in the near term, and with muted global cues, markets are expected to witness pressure, analysts said. While the Q3 financial performance is largely underwhelming so far, they added that the focus has shifted to upcoming Budget proposals. Most believe that the trigger now has to come from the budget for the market to regain strength. Otherwise, the market may continue to pursue the downward path, they further said.

Analysts said that select stocks and sectors will remain in focus in this scenario.

Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said: The anticipated policy changes under President Trump, including higher tariffs and a shift towards fossil fuels, could hinder solar demand growth and impact Indian exporters. Banking stocks will be in focus after HDFC bank’s earnings beat market expectations and brought some cheer to the banking index in the last hour of trading today. The management commentary and future guidance from HDFC Bank will be closely tracked. Also, the FMCG space could witness some action tomorrow as HUL released its Q3 numbers after market closing. “We expect markets to trade within a broad range in the near term, tracking global cues and quarterly performance of domestic companies,” he added.

Gift Nifty 23,150 signals a weak opening as Nifty futures closed at 23,199 on Wednesday.

Rajesh Bhosale, Technical Analyst, Angel One Ltd said: With approximately seven trading sessions left before the Union Budget, individual themes may come into focus, offering potential outperforming opportunities. He advised traders to stay alert and focus on such sectors or stocks for near-term gains.

“Compared to Tuesday’s sharp volatility, it was a relatively calm session on Wednesday, with prices trading within the previous day’s range, forming an ‘Inside Bar’ pattern. This pattern currently signals a support zone around the 23000–22900 levels. While some near-term relief is expected, the market remains on uncertain ground, and volatility may persist due to several key triggers, including upcoming earnings announcements,” he added.

Hrishikesh Yedve, AVP Technical and Derivatives Research, Asit C. Mehta Investment Interrmediates, said, technically, the Nifty has found support around 22,980 levels and formed an insider bar candle on the daily chart, indicating strength. If the index defends 22,980, then a short-term pullback towards 23,300-23,550 could be possible. “On the flip side, sustaining below 22,980 could lead to weakness towards 22,850-22,800 levels. On the upside, the 250-Days Simple Moving Average (250-DSMA) hurdle is placed around 23,580 levels, which will act as major resistance for the index. Thus, the sell on rise strategy should be adopted in Nifty,” he said.

Meanwhile, global stocks provide mixed trends and suggest lacklustre trade on the cards.