Nifty, Sensex to open higher; Anil Singhvi sees recovery phase, suggests important levels | Editor's Take

Indian equity benchmark indices are set to open sharply higher on Wednesday. The positive start is driven by a global market rally and a steep fall in crude oil prices. Investor focus will now shift to the Reserve Bank of India’s policy decision due later in the day.

Gift Nifty trends indicate a strong opening. Nifty futures on the NSE International Exchange surged 653.90 points, or 2.82 per cent, to 23,804. This signals a clear gap-up start for domestic equities.

Global rally lifts risk appetite

Add Zee Business as a Preferred Source

Global markets rallied after Donald Trump agreed to a two-week ceasefire with Iran. The development has eased fears of further escalation in West Asia.

Asian markets saw sharp gains. South Korea’s KOSPI jumped nearly 6 per cent. Japan’s Nikkei rose more than 5 per cent. Hong Kong’s Hang Seng advanced around 3 per cent. The rally reflects improving global risk sentiment.

Crude oil prices also corrected sharply. Prices fell nearly 13 per cent to around $94 per barrel. Reports suggest Iran may reopen the Strait of Hormuz, a key global oil supply route. For India, lower crude prices are positive as they ease inflation pressures and support macro stability.

Ceasefire signals boost confidence

Market expert Anil Singhvi said recent developments clearly point to near-term stability.

“The announcement of a full ceasefire before the final deadline is a strong signal that the risk of escalation has reduced in the near term,” he said.

He added that Iran’s response has been constructive.

“Iran’s positive response and its willingness to reopen the Strait of Hormuz are the key reasons behind the sharp fall in crude oil prices. This is a bullish trigger for global markets,” Singhvi noted.

Bottom formation signals strengthening

Singhvi believes markets may have already formed a bottom earlier this month.

“The market structure clearly indicates that a bottom has already formed around the April 2 lows,” he said.

He highlighted that April has historically been a strong period for equities.

“Historically, after a prolonged correction, the April series tends to deliver strong returns. A similar pattern is visible this time,” he added.

Technical indicators also support this view. The Relative Strength Index (RSI) had fallen below 30 earlier, indicating oversold conditions. Past geopolitical events also show that markets tend to recover sharply after initial corrections.

Strategy: Buy on dips

On strategy, Singhvi advised investors to remain constructive but disciplined.

“Investors should avoid chasing the market after a gap-up opening. The right strategy is to buy on dips,” he said.

He also suggested that those who exited in panic should reconsider.

“Those who sold in panic should consider re-entering, as the market appears to be entering a recovery phase,” Singhvi said.

He added that stock selection will be crucial, with better opportunities likely in the broader market, including small-cap stocks.

Sectoral trends and stock focus

Singhvi expects strong moves in select sectors.

“Infrastructure and logistics stocks like L&T and Adani Ports are likely to see strong buying interest,” he said.

He remains positive on oil marketing companies and aviation.

“Oil marketing companies such as HPCL and BPCL will benefit directly from the fall in crude prices, while aviation stocks like IndiGo could also outperform,” he added.

Gas and energy companies like Petronet LNG and GAIL may also see buying interest. Reliance Industries could witness a recovery.

However, he flagged risks for upstream oil producers.

“Upstream companies like ONGC and Oil India may remain under pressure due to lower crude prices,” Singhvi said.

RBI policy in focus

Despite strong global cues, the Reserve Bank of India’s policy decision remains the key domestic trigger.

Markets will closely track the central bank’s stance on inflation and growth. Any signal on the rate trajectory will guide market direction in the near term.

For now, sentiment remains firmly positive. Falling crude prices, easing geopolitical risks, and strong global cues have set the stage for a sharp upside in Indian equities.