Domestic markets are projected to open flat but with a positive outlook on Thursday, buoyed by strong global cues. Attention is focused on the Nifty and Sensex, which are nearing their previous all-time highs. The Sensex peaked at 85,801.70, and the Nifty reached 26,246.65 a year ago. Following overnight gains in U.S. stocks, most equities across the Asia-Pacific region are up in early trading today.
As of now, the Gift Nifty indicates an opening gain of 75 points at 26,448. Investor sentiment also hinges on the activities of foreign portfolio investors (FPIs), who were net buyers of nearly ₹5,000 crore, according to provisional data. Should this trend continue, analysts anticipate sustained market gains, including renewed interest in small-cap and mid-cap stocks, which have recently been under pressure.
Concerns remain surrounding a weakening rupee. Ponmudi R, CEO of Enrich Money, stated that global equity markets have gained momentum, driven by growing expectations of interest-rate cuts from the U.S. Federal Reserve. Major U.S. indices, including the S&P 500, Dow Jones, and Nasdaq, experienced solid advancements as softened Treasury yields and renewed policy optimism improved risk appetite. This optimistic sentiment has carried over into today’s global trade, with Asian markets opening higher. Overall, the global backdrop appears supportive, setting a constructive tone for Indian equities ahead of the market opening.
The derivatives setup also indicates a positive bias. Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, noted a distinctly positive trend, with put writers aggressively adding exposure at lower and at-the-money strikes. Concurrently, call writers are unwinding positions and moving towards higher strikes, signifying an upward bias.
A significant call Open Interest (OI) build-up of approximately 81.62 lakh contracts at the 26,500 strike suggests this level may present major resistance for the index. Conversely, a strong put OI accumulation of about 1.73 crore contracts at the 26,000 strike indicates a solid support base.
The Put-Call Ratio (PCR) has risen to 1.55 from 0.73, indicating an improvement in market sentiment. However, as the PCR approaches over-extended territory, mild profit-booking may occur in the short term.
Market volatility remains contained, with the India VIX around 12, reflecting a stable market environment. The combination of supportive global indicators, improving liquidity, and sector-wide participation is facilitating recovery from recent market softness. Analysts advise a buy-on-dips strategy but emphasize that the Nifty faces a crucial resistance zone between 26,200 and 26,277. Sustained trading above this range could pave the way to levels of 26,400 to 26,500, with support positioned at 25,900, followed by 25,800.
Published on November 27, 2025.
