Nifty and Sensex display fragile momentum despite gains; traders advised caution as trends signal choppy and uncertain market behaviour.

Indian benchmarks, Nifty and Sensex, have shown mixed signals with indices rising for a second consecutive day but maintaining an overall weak near-term trend. Market experts are observing choppy movements with a slight positive bias, highlighted by the formation of a small red candle on the daily Nifty chart, which indicates hesitation in market sentiment. Despite the recent pullback, the pattern of lower tops and lower bottoms remains, necessitating confirmation of a lower top reversal at current highs. Technical resistance for Nifty lies between the 23,300–23,350 range, and a decisive breach could catalyse further upward momentum. Conversely, 23,050 is a pivotal support point, which, if broken, might invite further downward pressure. Market analysts recommend traders retain caution while considering fresh entries in the current setup, adapting strategies to the unpredictable price movements. Additionally, open interest (OI) data reveals call-based resistance mostly concentrated at the 23,300 and 23,200 levels, while put-side support clusters at 23,200 and 23,100, adding nuances to positional decision-making. On the global stage, Wall Street witnessed a robust performance spurred by better-than-expected core inflation data, coupled with a strong showing in banking sector earnings. At the commencement of trading on Wednesday, the Dow Jones, S&P 500, and Nasdaq indices collectively rose, reflecting a surge in investor optimism. Leading contributors, including Wells Fargo, Citigroup, Goldman Sachs, and JPMorgan Chase, benefited from increased dealmaking activity and robust financial performance, further supported by a favourable economic environment and central bank policy shifts. Indian corporate results also played a vital role in driving market action. HDFC Life reported a 15% YoY rise in net profits for its financial quarter, L&T Technology Services noted a modest decline in profit despite moderate revenue growth, while Bank of Maharashtra impressed with over a 35% increase in PAT, underpinned by falling bad loans. However, some companies like Reliance Industrial Infrastructure and L&T Technology reported subdued results, hinged on weaker asset utilisation and operational headwinds. Sectoral movements highlighted the dynamism across industries. While real estate stocks remained a bright spot, media stocks faced significant pullbacks, highlighting divergent market sentiment. Broader indices outperformed benchmark indices, showcasing the resilience of smaller segments of the market amidst volatility. Internationally, the US dollar weakened marginally, pushing gold prices higher as traders prepared for upcoming inflation stats. Global crypto markets saw Bitcoin recovering strongly to $97,000, buoyed by optimistic pre-CPI market sentiment. Back home, the Indian rupee rebounded after notable lows, providing some reprieve against inflationary fears. On the IPO front, several promising offerings were widely subscribed, reflecting bullish investor appetite in niche sectors like renewable energy and jewellery. Major developments extended to regulations and company-specific movements. SEBI proposed new reforms around dematerialisation requirements, while leading corporates like Adani Energy Solutions and Hindalco's Novelis subsidiary stood out for expansive growth projects in power transmission and aerospace aluminium. Tata Capital successfully raised $400 million through bond sales, showcasing confidence in India's financial landscape. Meanwhile, Vedanta Resources plans a billion-dollar bond issue aimed at refinancing needs. Overall, the mixed performance across indices and sectors underscores the need for investors to balance optimism with caution. While global and domestic cues appear broadly supportive, lingering headwinds in sectors like media and public sector equities suggest risks remain. Traders should monitor key resistance and support levels in Nifty closely while staying updated on broader earnings data and shifts in global macroeconomic trends.