Editor’s Take: Anil Singhvi flags caution near highs; Sensex, Nifty key levels to track

Editor’s Take: The Indian stock market is set for a strong opening on Wednesday. Momentum remains positive. However, sustainability at higher levels will be the key question.

GIFT Nifty is trading at a premium of over 130 points. This indicates a gap-up start. Past trends suggest that sharp gap-ups often see profit booking.

Zee Business Managing Editor Anil Singhvi advises caution despite the strong setup.

What triggered Tuesday’s rally

The rally on Tuesday was largely sentiment-driven. Markets recovered sharply after a weak previous session.

The Nifty 50 rose 445 points to close at 22,958. The BSE Sensex gained 1,372 points to end at 74,068. The Bank Nifty climbed 1,305 points to settle at 52,743.

The main trigger was easing global tension. Hopes of de-escalation in the US-Iran conflict improved risk appetite.

Global cues: Focus on US-Iran developments

Comments from Donald Trump supported sentiment. He signaled possible progress on a peace plan and claimed weakening of Iran’s nuclear capability.

Asian markets are trading higher. Dow futures are also firm. This is supporting domestic equities.

However, the situation remains uncertain. Any negative update can reverse market direction.

Key questions for today

Investors are watching multiple developments.

Is the reported 15-point peace plan credible? Has Iran softened its stance? Can crude oil fall below $90? Why is GIFT Nifty showing strong momentum? Why are Dow futures rising early?

Investors will also track recovery in gold and silver. FII selling remains a key concern.

Positives supporting the market

There was no major escalation in the previous session. Crude oil remains stable near $90–95. Domestic institutional investors continue to buy.

The rupee recovered by around 11 paise. India VIX fell about 7 per cent. Asian markets are also strong.

Risks to watch

Tensions between Iran and Israel continue. Reports suggest fresh attacks. Iran has not clearly responded on a ceasefire.

FIIs continue to sell heavily. This may limit upside. Signals from Donald Trump remain unpredictable.

Trading strategy: What should investors do

Anil Singhvi suggests a cautious approach.

Profit booking may emerge if Nifty opens in the 23,150–23,350 range. Traders should avoid chasing a strong opening.

Dips near 22,850–22,950 may offer better entry points. Stocks beaten down due to war concerns may see buying interest.

Traders should keep positions light. Focus on risk management. Volatility may remain high due to global developments and weekly expiry.