Daijiworld Media Network -Mumbai

Mumbai, Apr 15: Indian equity markets are likely to open on a strong note on Wednesday, tracking positive global cues and improving investor sentiment amid easing geopolitical tensions.

Benchmark indices recovered most of their intraday losses on Monday, with buying emerging at lower levels. Global sentiment remained upbeat as reports indicated a possible second round of talks between the US and Iran, boosting confidence across markets. Major global indices ended in the green on Tuesday, while US markets extended gains for a second straight session.

Foreign Institutional Investors (FIIs) remained cautious, selling equities worth Rs 1,983 crore on Monday after buying Rs 672 crore in the previous session. Market participants are closely watching whether FIIs will resume consistent buying. Notably, FIIs currently hold a significant short position, which could trigger a short-covering rally if positive momentum sustains.

Crude oil prices, which saw sharp volatility in recent sessions, have cooled off, with Brent crude slipping below $100 per barrel following signs of de-escalation in global tensions.

On the technical front, the Nifty50 index closed about 200 points lower on Monday but managed to recover most of the day’s losses. The 20-day EMA level of 23,500 is seen as a key support zone, while resistance is placed around 24,200, a level the index has struggled to decisively breach in recent sessions.

Despite short-term volatility, market momentum remains broadly bullish, with hourly charts indicating a positive trend. Analysts suggest that sustained global support and FII activity will be crucial in determining near-term direction.