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Below Quote on Pre-market comment for Wednesday April 08th by Aakash Shah, Technical Research Analyst, Choice Broking

Indian equity markets are expected to open on a positive to mildly gap-up note on Wednesday, supported by strong indications from GIFT Nifty and positive global cues. The recent rebound in benchmark indices, along with easing crude oil prices and improving sentiment, along with short covering at lower levels may support early gains. However, volatility is likely to persist amid ongoing geopolitical concerns and continued foreign fund outflows.

In the previous session, benchmark indices ended on a strong positive note after a volatile start, indicating resilience at lower levels. The Nifty 50 closed at 23,123, while the BSE Sensex gained around 500 points to settle at 74,616. The rally was driven by short covering, strength in IT stocks, and supportive global cues despite lingering macro concerns.

Sectorally, buying was seen in IT and select heavyweight stocks, which supported the indices during the rebound. However, sentiment remained mixed across sectors, with continued pressure in oil-sensitive pockets due to elevated crude prices. Broader markets showed selective participation, reflecting cautious investor sentiment despite the recovery.

From a technical perspective, the Nifty 50 has reclaimed the 23,000 mark, indicating short-term strength after recent correction. Immediate resistance is placed near 23,800–24,000, where selling pressure may emerge. On the downside, support is seen around 23,500–23,450, and a breach below this zone could trigger renewed weakness in the near term.

The Bank Nifty index also witnessed recovery and closed near the 52,700 zone, reflecting buying at lower levels in banking stocks. Immediate resistance is seen near 54,700–55,000, while support is placed around 53,500–53,700. Banking stocks are expected to remain crucial in determining the overall market direction.

On the institutional front, FIIs remained net sellers to the tune of approximately Rs.8,692 crore, while DIIs continued their strong buying with inflows of around Rs.7,980 crore, This ongoing divergence between foreign and domestic flows continues to play a key role in market stability. Meanwhile, India VIX Meanwhile, India VIX stood at 24.6950, indicating a slight cooling from recent highs but still reflecting elevated volatility levels, suggesting traders should remain cautious in the near term.

Overall, the market setup suggests a positive start with potential for a pullback rally, but the broader trend remains cautious due to global headwinds and FII selling pressure. Traders are advised to adopt a buy-on-dips or stock-specific approach, while maintaining strict risk management. Key sectors to watch include IT, banking, and oil-sensitive stocks, as volatility and global cues are likely to drive market direction in the near term.

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