Sensex and Nifty are likely to open higher on Wednesday as optimism surrounding U.S.-China trade negotiations is expected to boost market sentiment. The White House indicated that President Donald Trump might meet Chinese President Xi Jinping soon to further trade discussions.
This development has led to a positive reaction in global markets, including a rise in U.S. stock market overnight and a similar trend in Asian markets, with the MSCI Asia ex-Japan index gaining 0.9%.
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Gift Nifty futures were trading at 24,723, suggesting a higher opening above Nifty’s previous close of 24,542.50. The anticipation of a constructive dialogue between the U.S. and China is fuelling investor confidence, potentially leading to a more stable trading environment.
VLA Ambala, Co-Founder of Stock Market Today, said that given the current market momentum, 24,430 would be a key level to watch today and may emerge as a make-or-break point for the benchmark index.
“We can expect Nifty to find support between 24,250 and 24,180 and face resistance near 24,670 and 24,810,” she added.
Foreign portfolio investors (FPIs) have been selling shares for three consecutive sessions. They sold share worth Rs 2,589.47 on Tuesday. In contrast, domestic institutional investors (DIIs) have been net buyers for the past eleven sessions, indicating a supportive domestic investment environment.
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However, despite strong domestic macroeconomic data, including impressive March-quarter growth figures, the Nifty index has declined for three consecutive sessions, primarily due to uncertainties in global trade.
Rate-sensitive sectors will be under scrutiny ahead of the Reserve Bank of India’s policy decision on Friday, with a widely anticipated interest rate cut to support growth.
As the market awaits this decision, the positive momentum from the potential breakthrough in U.S.-China trade talks is likely to influence today’s trading session, providing an optimistic start for Sensex and Nifty.
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