Gifty Nifty is indicating a positive start for the domestic markets on Wednesday amidst global recovery. Gifty Nifty at 23,150 suggests a gain of around 50 points for Nifty.
Market sentiment turned cautious after US President Donald Trump announced trade tariffs on neighbouring countries, creating uncertainty around global trade dynamics. This move has raised concerns about potential disruptions in international trade, leading to a pullback in domestic equities.
Analysts are anticipating a technical pullback due to the oversold condition. However, they mentioned that the market will remain volatile until the Budget presentation. Finance Minister Nirmala Sitharaman is set to unveil the 2025-26 Budget in February.
Equities across the Asia-Pacific region were up early on Wednesday following a strong overnight closing in the US. However, Chinese markets experienced a sharp decline on reports of a new tariff imposed by US President Trump.
Om Mehra, Technical Analyst at SAMCO Securities, stated that the broader structure of lower highs and lower lows remains intact, indicating the continuation of the downtrend. He noted that Nifty slipped below its 9-day EMA, signaling weakening short-term momentum.
Rajesh Bhosale, Technical Analyst at Angel One Ltd – Angel One, mentioned that it was a disappointing session for the bulls as hopes of recovery were dashed with the bears regaining control. The markets faced a broad-based sell-off, underperforming compared to global peers.
At this point, bottom fishing should be avoided as the market remains vulnerable. It is advisable to wait for clear signs of stabilisation or reversal. The ongoing weakness is expected to persist given the severity of the sell-off.
Overall, the market outlook remains uncertain and cautious as investors monitor global developments and await the Budget presentation for further direction.
