Domestic markets are expected to open on a cautious note, likely remaining subdued ahead of a public holiday on Wednesday. With the conclusion of the second quarter earnings season approaching, analysts indicate that attention will shift to macroeconomic data. The markets will be closed on Wednesday in observance of Guru Nanak Jayanti.
Emkay Global Research, in a recent note, remarked that broad macro indicators bolster optimism for a cyclical recovery commencing in the second half of FY26, driven by discretionary consumption. The robust festive season sales in critical sectors such as automobiles—evident with a 27% year-on-year increase in two-wheeler sales from September to October 2025—are supported by ancillary data, including an acceleration in credit growth to 11.5% and a 27% year-on-year rise in credit card spending in September 2025.
The Nifty futures indicate a flat opening at 25,892.
According to the Morning Market Outlook by Ponmudi R, CEO of Enrich Money, Indian markets are anticipated to open steadily to mildly cautiously, with consolidation likely to continue amid mixed global signals and considerable resilience near key support levels. “Domestically, the undertone remains positive, underpinned by healthy institutional inflows and consistent earnings momentum, although moments of volatility may persist within the broader range,” he stated.
The India VIX, which measures market volatility, rose by 4.22% to 12.66, reflecting increased market fluctuations amid ongoing uncertainty. Open interest data in the derivatives segment revealed significant call writing at the 25,800 and 25,900 strike prices, while the largest put open interest was recorded at the 25,700 strike, indicating strong resistance around the 26,000 mark.
Amruta Shinde, Technical and Derivative Analyst at Choice Equity Broking Private Ltd., noted, “Overall, market sentiment remains cautiously optimistic, with traders awaiting a decisive close above 25,800 to confirm a continuation of bullish momentum. Maintaining levels above this crucial resistance zone will be essential to facilitate the next phase of the uptrend in the near term.”
Emkay Global also pointed out, “Financial markets appear supportive, with the rupee and long-term bonds stabilizing following a challenging one to two quarters—we believe the worst is over. We maintain a positive outlook on the markets, projecting a Nifty target of 28,000 for September 2026, with discretionary consumption as our top sector pick.”
Published on November 4, 2025.
