Nifty Expected to Open Quietly; Emkay Predicts Robust FY27 for SMID Banks

Indian equity markets are expected to open mildly positive on Tuesday amid mixed global signals and steady institutional flows | Photo Credit:

Ponmudi R, CEO of Enrich Money, said: The broader tone for Indian markets remains cautiously bullish, supported by better-than-expected Q2 earnings and steady domestic institutional flows that continue to underpin market momentum. “However, lingering uncertainty around the India–U.S. trade deal is tempering expectations, prompting bouts of profit-booking at higher levels as investors weigh near-term risks against the strong underlying fundamentals.” he cautioned.

Analysts expect activity to be centred around select stocks and sectors.s

SMID banks in focus

Emkay Global Research, in a mid-week India strategy report, said: SMID (Small and Mid-Cap) private sector banks are at an inflection point. They are in a better position to capitalise on accelerating banking, given smaller bases and greater risk appetites. The turn in the credit cycle also benefits them, leading to strong FY27E earnings acceleration. The wave of strategic transactions further strengthens the investment case, as it solves capital woes and strengthens deposit franchises. We are positive on the entire basket—Federal, RBL, IDFC First, and Yes—and add IDFCFB to our model portfolio.

Expiry watch

Meanwhile, Gift Nifty is ruling at 26,060, against the Nifty Oct futures at 26,013 and the November futures at 26,168, signalling a range-bound opening for Indian markets. According to analysts, the focus will be on the ongoing result season and upcoming monthly expiry of October series on the NSE.

Derivatives data points toward a cautiously optimistic setup ahead of the monthly expiry, with both long and short positions being actively built—signalling a range-bound yet positive sentiment. 

Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said:A substantial open interest (OI) of 1.36 crore contracts at the 26,100 call strike highlights a significant resistance area, while heavy put OI of 1.52 crore contracts at the 25,900 strike reaffirms strong support at lower levels.

Interestingly, the balanced buildup of positions on both sides suggests that the index could continue to oscillate within a defined range in the near term. The Put-Call Ratio (PCR) rose sharply to 1.02 from 0.65, underscoring a bullish undertone and indicating that any corrective move is likely to attract fresh buying from positional traders.

India VIX edged up marginally by 2.31% on Monday, gradually inching higher but still reflecting a composed and confident market sentiment. “The low-volatility environment underscores a phase of measured optimism and steady participation from both traders and investors,” he said.

Published on October 28, 2025