Positive Opening Expected for Indian Stock Market as Global Peers Gain

The Indian stock market is anticipated to have a positive opening on Wednesday, supported by gains in global peers. The Sensex and Nifty 50 indices are expected to see a gap-up start, with the Gift Nifty indicating a level around 22,120, higher than the previous close of 22,000 for Nifty futures.

After a bounce back on Tuesday, the domestic equity indices closed higher, with the Nifty 50 surpassing the 21,900 level. The Sensex surged by 454.67 points to finish at 72,186.09, while the Nifty 50 settled 157.70 points higher at 21,929.40. On the daily chart, Nifty 50 formed a long bull candle that almost engulfed the bearish candle of Monday, indicating a potential nullification of the previous bearish pattern. Analysts suggest that the market is poised for an upward movement toward new all-time highs.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, believes that the upside breakout at 21,970 levels may lead to the nullification of the crucial opening downside gap of January 17.

Technical analysts are cautiously optimistic about the market. Rupak De, Senior Technical Analyst at LKP Securities, suggests that a decisive move above 21,950 could propel the Nifty 50 towards 22,200, while a decline below 21,850 might instigate a correction toward the 21,700 level.

The Bank Nifty index, however, underperformed the benchmark indices. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, observed a subdued trading session for the Bank Nifty index, awaiting a breakout to determine the market direction. The index faces immediate resistance at 46,000, and a successful break above this level could drive it towards 46,500.

The stock market outlook remains positive, but investors are advised to consult with certified experts before making any investment decisions.

Finance Minister Nirmala Sitharaman delivered the Budget speech, the details of which can be found in our separate coverage.