Indian equity benchmark indices are poised for a gap-up opening on Wednesday, supported by a slew of global and domestic cues. Resurfacing of truce talks between the US and Iran sent crude oil prices lower, while upbeat Q4 earnings from India Inc boosted the sentiments further, lifting the risk appetite.

Nifty is expected to consolidate in the near term, with markets likely to remain sensitive to developments in West Asia. Positive domestic macros, steady Q4 earnings and intermittent FII buying has provided near-term support, elevated crude prices, currency weakness and geopolitical uncertainties are key overhangs, said Siddhartha Khemka, Head of Research of Motilal Oswal Financial Services.
 

GIFT Nifty, Asian markets & US stocks

GIFT Nifty Futures on the NSE International Exchange were 186.20 points, or 0.77 per cent, up at 24,292.50, hinting at a positive start for the domestic market on Wednesday. Asian stocks rose on Wednesday after ​US President Donald Trump touted 'great progress' towards a 'final agreement' with Iran. KOSPI rose more than 5 per cent, while Hang Seng inched up half a per cent.

The US stocks ended higher on Tuesday, lifted by Intel ​and other AI-related stocks, as a US-Iran ceasefire held firm and investors focused on strong quarterly earnings. The Nasdaq gained 1.03 per cent to 25,326.13 ‌points, while ⁠the Dow Jones Industrial Average rose 0.73 per cent to 49,298.25 points. The S&P 500 climbed 0.81 per cent to end the session at 7,259.22 points.
 

Crude, US dollar, gold & more

The Trump's pause on operation in Strait of Hormuz sent Brent crude tumbling 1.2 per cent to $108.51 per barrel. In the foreign exchange markets, the US dollar index snapped a three-day winning streak, nudging down 0.1 per cent to 98.236. Gold was ​1.2 per cent higher at $4,609.59. In cryptocurrencies, bitcoin was down 0.9 per cent at $80,881.12.

The decline was primarily driven by renewed escalation in US–Iran tensions, which pushed crude oil prices higher, said Ajit Mishra, SVP of Research at Religare Broking. The focus should remain on identifying stocks based on sectoral trends while maintaining a balanced approach, he said.
 

FII-DII flows

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 3,621.58 crore on Tuesday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 2,602.62 crore on a net-net basis.
 

Nifty50 & Sensex outlook

Technically, the market took support near 23,900/76,500 after an initial intraday dip and registered some recovery. It is witnessing non-directional activity, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

"For day traders, 23,900/76,500 would act as an immediate support zone, while 24,100/77,200 or the 50-day SMA would be the key resistance area for the bulls. A successful breakout above 24,100/77,200 could push the market up to 24,250,24350/77,700-78,000, while below 23,900/76,500, the market could retest the levels of 23,800-23,750/76,200-76,000," he adds.

The Nifty5- took support near its 21-DMA around 23,950 levels and managed to close above the 24,000 mark. However, it encountered resistance near its 50-DMA at 24,080 and formed a Doji candle on the daily chart, indicating indecision, said Nilesh Jain, VP and Head of Technical and Derivative research at Centrum Finverse.

"A decisive move above 24,100 could pave the way for further upside towards 24,300, while immediate support is seen at 23,900 levels. The broader trend currently appears sideways, though the setup remains constructive for accumulation with a potential pullback on the upside," he adds.
 

Nifty Bank outlook

"Nifty Bank formed a high wave candle with a lower high and a lower low signaling consolidation with corrective bias. Overall, we expect the Bank Nifty to extend consolidation in the broad range of 54,000-56,500 amid stock specific action as we progress through the quarterly earning session of the banking stocks," said Bajaj Broking.

Within the consolidation a move above 55,000 levels being the trendline resistance joining recent highs will signal extension of the pullback towards the 56,500 levels. While a breach below the key support area of 54,000 will signal extension of the decline towards 52,500 levels It has immediate support around 54,000 levels being the confluence of the recent low, it adds.

Nifty Bank continued to underperform and it is indicating a pattern of lower highs and lower lows, reflecting sustained relative weakness. It is currently trading below its key moving averages, which further underscores the prevailing bearish undertone, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

"Going ahead, the 54,100–54,000 zone is expected to act as a crucial support. A sustained break below 54,000 may trigger further downside, potentially leading to a correction towards the 53,400 level in the short term. On the upside, the 55,000–55,100 zone will serve as an immediate hurdle. A decisive move above 55,100 could result in a pullback rally towards the 55,600 mark," he adds.