The market is expected to open positively on Wednesday despite the US market closing on a negative note. Early Asian stocks are in the positive zone, with the Gift Nifty signaling a flattish opening at 22,550. Analysts anticipate the market to remain within a narrow range with limited downside, as most of the selling pressure has already been absorbed.
Satish Chandra Aluri, Lemon Markets Desk, commented that the market appears to be stabilizing as the selling pressure has eased, although uncertainties surrounding trade policies are hindering a significant rebound. Global developments are expected to add to the volatility in the market.
Hardik Matalia, Derivative Analyst at Choice Broking, noted that the India VIX has risen slightly to 14.0725, indicating growing uncertainty among traders. Open Interest data suggests strong resistance levels at the 22,600 and 22,700 call strike prices, with key support at the 22,400 put strike price.
Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities, mentioned that there is a guarded sentiment in the derivatives market, with put writers showing more conviction than call writers. The 22,200–22,700 range has seen significant accumulation of both call and put positions, indicating a tug-of-war scenario. Aggressive put writing at the 22,000 strike highlights a strong demand zone, while the 23,000-call strike is seen as a formidable resistance level. The Put-Call Ratio (PCR) has shifted towards bullish sentiment, with traders adding long positions.
Amidst all this, analysts are closely monitoring US President Donald Trump’s tariff war, which continues to create uncertainty in the market. Adjusting to the Trump factor remains a key focus for investors.
