Indian Stock Market Looks to Rebound Amid Easing AI Disruption Fears and US Tech Sector Uptick.

Indian Equity Benchmarks Expected to Open Firmly on Wednesday

Key Highlights:

• Sensex and Nifty may open on a firmer note, tracking a rebound in US technology stocks
• Global cues have improved, led by a 0.76% rise in the Dow Jones, 0.77% gain in the S&P 500, and over 1% climb in the Nasdaq
• Nifty IT index has lost over 21% this month amid concerns of AI disruption, but a recovery in global tech stocks may provide short-term relief

Market Analysis:

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The GIFT Nifty is trading marginally higher, signaling a mildly positive start for the Sensex and Nifty. This follows a rebound in US technology stocks, led by renewed optimism around artificial intelligence. The recovery in global tech stocks may provide short-term relief to Indian IT counters, which have been under heavy pressure.

Domestic Technical Indicators:

Domestic technical indicators suggest caution remains warranted. The 200-day moving average is a critical zone, and a sustained hold near this level could trigger short-covering. However, a decisive breach may accelerate downside toward the 25,000 mark.

Key Support and Resistance Levels:

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• Immediate support for Nifty is around 25,300
• Resistance is seen in the 25,600-25,700 range
• A sustained move above 25,800 could open the path toward 26,000

Bank Nifty:

The Bank Nifty appears relatively resilient, holding above the 61,000 zone. Sustained trade above 61,500-61,700 could confirm renewed strength in banking stocks, which may help cushion broader market weakness.

Institutional Flows:

Institutional flows remain a key variable, with foreign institutional investors selling shares worth Rs 102 crore on February 24, while domestic institutional investors buying shares worth Rs 3,161 crore.

Macro Concerns:

Firm crude oil prices, hovering near multi-month highs, add to macro concerns for India. Firm energy prices could weigh on inflation expectations and currency sentiment, limiting upside momentum even if global equities stabilise.