Domestic markets are expected to open strongly higher, thanks to global cues and the unwinding of short positions of foreign portfolio investors in the F&O segment. Better-than-expected results by US-listed Cognizant Technologies are likely to lift sentiment for IT stocks, said analysts. Exit polls suggesting an advantage to the BJP in the New Delhi assembly elections will also boost traders’ sentiment.
Gift Nifty at 23,805 signals a gain of about 60 points in the opening trade for Nifty. Analysts expect a limited downside, with most companies having declared the results.
Key results
However, today, index heavyweights such as SBI, ITC, Bharti Airtel, and Hero MotoCorp will declare their results. LIC, Apollo Tyres, BEML, NMDC, NMDC Steel, BSE, Cochin Shipyard, DCX India, Greenpanel, Muthoot Microfinance, Sobha, and REC will also declare their results.
Derivative data indicates a moderately bearish sentiment, as call writers maintain a subtle advantage over put writers, suggesting a shift in seller positions, said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.
The 24,000-call strike experienced a sharp increase in open interest (1.66 crore contracts), reinforcing it as a strong resistance zone. Meanwhile, substantial put writing at the 23,000 strike (1.31 crore contracts) signals solid downside support. Noteworthy put additions between 23,300 to 23,500 further solidify the support base, while call unwinding at higher strikes hints at potential bullish repositioning. “The Put-Call Ratio (PCR) decreased to 0.85 from 0.94, suggesting growing bearish sentiment, while the “max pain” level at 23,650 implies limited downside risk despite market fluctuations,” he added.
Mandar Bhojane, Research Analyst at Choice Broking, said that despite the bearish candle formation, the presence of key support near 23,500 and positive sentiment in the broader market could provide opportunities for short-term gains, particularly if Nifty manages to break through resistance levels.
Meanwhile, equities in the Asia-Pacific region are up in an early deal on Thursday.
