Stock markets are likely to open slightly higher on Thursday, tracking gains in Asian markets after strong earnings from US chipmaker Nvidia. However, traders may remain cautious as there are no fresh domestic triggers and profit booking has been seen at higher levels in recent sessions.
Gift Nifty futures were trading at 25,676 at 8:00 am, suggesting that the Nifty 50 may open above Wednesday’s closing level of 25,482.5. The early signal points to a mild positive start for the day.
On Wednesday, both benchmark indices rose nearly 0.9% during intraday trade. However, they gave up most of the gains by the close, ending only slightly higher. Selling pressure was visible at higher levels, showing that traders are still cautious.
Gaurav Udani, Founder – Thincredblu Securities Pvt Ltd, said Gift Nifty indicates a flat to slightly positive start, with Nifty expected to open near 25,520, up around 40 points.
He said that despite the positive cue, the broader structure remains range-bound. Resistance is placed in the 25,650 to 25,800 zone, where selling pressure has emerged in recent sessions. Immediate support lies at 25,400 to 25,350. A clear move beyond either of these levels will be needed to set a firm direction.
He added that technically, Nifty continues to trade sideways, with neither bulls nor bears in strong control. Momentum remains neutral and follow-through buying has been limited. Until there is a confirmed breakout, traders should expect range-bound volatility and avoid chasing sharp intraday moves.
Other Asian markets were up around 0.6%, tracking overnight gains on Wall Street. Nvidia reported a 73% jump in quarterly revenue, beating estimates, which supported global market sentiment.
Oil prices also moved higher and are hovering near seven-month highs. Investors are watching developments around US-Iran nuclear talks. Any risk to oil supply could affect global markets.
Bajaj Broking Research said geopolitical developments involving the US and Iran, along with artificial intelligence and tariff-related news, are likely to guide market mood in the near term.
Ajit Mishra, SVP, Research, Religare Broking Ltd, said that amid the current uncertainty, a selective approach based on sector trends is working well. He prefers banking, auto, metal and energy stocks for long positions.
He added that participants should look for opportunities on both sides of the market until a clearer directional trend emerges in the index.
Foreign institutional investors and domestic institutional investors showed mixed activity in recent sessions.
On February 25, FIIs bought shares worth Rs 30,369.48 crore and sold shares worth Rs 27,377.84 crore, resulting in a net purchase of Rs 2,991.64 crore.
On February 24, FIIs bought shares worth Rs 20,550.91 crore and sold shares worth Rs 20,653.44 crore, leading to a net sale of Rs 102.53 crore.
On February 23, FIIs purchased shares worth Rs 15,294.02 crore and sold shares worth Rs 11,810.32 crore, resulting in a net purchase of Rs 3,483.70 crore.
For the month till date, FIIs have bought shares worth Rs 288,008.39 crore and sold shares worth Rs 283,646.82 crore. This has led to a net purchase of Rs 4,361.57 crore.
Domestic institutional investors were also active.
On February 25, DIIs bought shares worth Rs 18,346.49 crore and sold shares worth Rs 13,227.92 crore, resulting in a net purchase of Rs 5,118.57 crore.
On February 24, DIIs bought shares worth Rs 18,580.96 crore and sold shares worth Rs 15,419.74 crore, leading to a net purchase of Rs 3,161.22 crore.
On February 23, DIIs bought shares worth Rs 12,360.86 crore and sold shares worth Rs 13,653.10 crore, resulting in a net sale of Rs 1,292.24 crore.
Month till date, DIIs have bought shares worth Rs 302,611.78 crore and sold shares worth Rs 281,513.05 crore. This has led to a net purchase of Rs 21,098.73 crore.
The overall mood remains cautious but slightly positive at the open, supported by global cues. However, repeated selling at higher levels shows that traders are booking profits quickly.
Unless Nifty moves clearly above the 25,650 to 25,800 zone or falls below 25,400 to 25,350, the market is likely to remain range-bound. Investors may focus on sector-specific moves and stock-specific action rather than expecting a strong trend in the broader market today.
