The domestic markets are expected to open strongly higher today, driven by positive global cues and the unwinding of short positions by foreign portfolio investors in the F&O segment. Analysts believe that better-than-expected results from US-listed Cognizant Technologies will boost sentiment for IT stocks. Additionally, exit polls indicating an advantage for the BJP in the New Delhi assembly elections are likely to further lift traders’ sentiment.
The Nifty is expected to open at 23,805, signaling a gain of about 60 points in the opening trade. Analysts anticipate a limited downside, with most companies having already declared their results.
Key results to watch out for today include heavyweights such as SBI, ITC, Bharti Airtel, and Hero MotoCorp. Other companies set to declare their results include LIC, Apollo Tyres, BEML, NMDC, NMDC Steel, BSE, Cochin Shipyard, DCX India, Greenpanel, Muthoot Microfinance, Sobha, and REC.
Derivative data suggests a moderately bearish sentiment, with call writers holding a slight advantage over put writers. The 24,000-call strike is seen as a strong resistance zone, while substantial put writing at the 23,000 strike indicates solid downside support. Put additions between 23,300 to 23,500 reinforce the support base, with call unwinding at higher strikes suggesting potential bullish repositioning. The Put-Call Ratio (PCR) has decreased to 0.85, reflecting a growing bearish sentiment.
Despite a 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. Equity markets in the Asia-Pacific region are also up in early trading on Thursday.
Overall, the outlook for the markets remains positive, with factors such as global cues, election results, and corporate earnings playing a significant role in shaping investor sentiment.
