The market is likely to see a positive opening on Wednesday despite an adverse closing in the US. Asian stocks are in the positive zone in early deals, while Gift Nifty at 22,550 signals a flattish opening. Analysts expect the market to remain in a narrow range and limited downside as most of the selling has already been absorbed.
Satish Chandra Aluri, Lemonn Markets Desk, said: Market seems to be in a place where the intensity of selling has reduced as a lot of negatives seem to have been priced in, but there are still known unknowns around the trade policy, which is keeping the rebound in check.
However, volatility will be higher due to global developments.
Hardik Matalia, Derivative Analyst, Choice Broking, said: The India VIX rose 0.63 per cent to 14.0725, reflecting a slight increase in market volatility. This indicates growing uncertainty among traders, which could lead to sharp price swings in the near term. “Open Interest (OI) data shows the highest OI on the call side at the 22,600 and 22,700 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 22,400 strike price, marking it as a key support level,” he added.
Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities, said: The derivatives market reflects guarded sentiment, with put writers displaying slightly stronger conviction than call writers, indicating cautious optimism among participants. A substantial open interest build-up at the 23,000-call strike (1.49 crore contracts) highlights this level as a formidable resistance. “On the flip side, aggressive put writing at the 22,000 strike (1.10 crore contracts) reinforces a solid floor for the index. The 22,200–22,700 range has seen a strong accumulation of both call and put positions, setting up a classic tug-of-war scenario. Put writers are steadily increasing their exposure at lower levels, emphasising the formation of a strong demand zone. The Put-Call Ratio (PCR) has risen from 0.78 to 1.07, reflecting a tilt towards bullish sentiment as traders add long positions,” he further said.
Meanwhile, all eyes are on US President Donald Trump’s tariff war that takes a lot of twists and turns every day. Market is trying to adjust to the Trump factor, said analysts.
