Amid mixed global signals, domestic markets are anticipated to open on a flat note on Thursday. Analysts predict continued volatility and a lack of clear direction in the near term. The Gift Nifty is currently trading at 25,727, showing a slight increase from Tuesday’s close.
Ponmudi R, CEO of Enrich Money, noted that global markets are displaying early signs of stabilization following a volatile start to the week, presenting a cautiously optimistic environment for Indian equities. However, he cautioned that the recent rise in US bond yields, fueled by stronger-than-expected economic data, may trigger renewed foreign outflows from emerging markets. This situation could put pressure on the rupee and contribute to near-term volatility in domestic stocks.
According to JM Financial’s Nifty50 Analyser report, the Nifty50 has yielded returns of 6.3 percent over the last year from October 2024 to October 2025, while earnings per share (EPS) forecasts for FY26E and FY27E have been revised down by 8.5 percent and 7.5 percent, respectively. In October 2025, month-over-month EPS estimates for FY26E and FY27E recorded slight decreases of 0.2 percent and 0.3 percent. The proportion of Nifty companies experiencing EPS cuts rose from 36 percent in September 2025 to 52 percent in October 2025. Key sectors contributing to these cuts include Insurance, Consumer Goods, Metals & Mining, IT Services, Pharmaceuticals, Utilities, and Cement. Significant EPS reductions were reported for firms such as Eternal, Adani Enterprises, JSW Steel, Coal India, and Kotak Mahindra Bank, while upgrades were seen for Hindalco Industries, Eicher Motors, Infosys, HDFC Bank, and Grasim Industries.
In the derivatives market, caution predominates.
Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, indicated that derivatives data reflect a defensive outlook. Call writers are increasing positions at higher levels, whereas major put writers are shifting to lower strikes, suggesting risk aversion. He highlighted a substantial build-up of open interest (OI) of 77.61 lakh contracts at the 26,000 call strike, indicating firm resistance, while notable put OI of 51.90 lakh contracts at the 25,200 strike offers limited support. The Put-Call Ratio (PCR) has increased to 0.73 from 0.63, reflecting cautious sentiment, with sellers maintaining control near resistance zones.
Amruta Shinde, Technical & Derivative Analyst at Choice Broking, noted that the India VIX, a gauge of market volatility, edged down by 0.10 percent to 12.65, suggesting a relatively stable sentiment despite broader market corrections. In the derivatives segment, OI data show the most significant call writing at the 25,700 strike, while the highest put OI is concentrated at the 25,600 strike, indicating firm resistance near the 25,700 level.
Overall, the market appears to be in a consolidation phase, with traders adopting a cautious approach ahead of key global and domestic developments. A sustained move above 25,700 will be essential for reviving bullish momentum, while a failure to maintain position above the 25,500 level could lead to further weakness in the near term.
Meanwhile, equities across the Asia-Pacific region are witnessing gains in early trading, bolstered by a strong closing on US exchanges.
Published on November 6, 2025.
