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Indian equity markets are likely to open mildly negative, not on Monday, signals Gift Nifty, which is ruling at 25,160 against the Nifty future value of 25,205. Analysts expect the market to move in a narrow range while the focus is on the two-day US Federal Meet that starts on September 16. However, the domestic consumption theme is likely to keep the market in a range..
According to Emkay Global Research, there is widespread optimism about a 2H recovery with focus on the economy segments, for which the GST impact on affordability is more pronounced. This reinforces our consumption-driven OW call on the broader market, and we maintain our Nifty target at 28,000 for Sep-26E.
Meanwhile, foreign portfolio investors have turned positive last week.
FIIs may sustain inflows on strong growth
VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said, “Going forward, FIIs are likely to reduce their selling and may even turn buyers since there are indications of a turnaround in the Indian market. India’s GDP growth has rebounded strongly in Q1 and the reforms – Budget tax cuts, rate cuts by the MPC and GST rationalisation- have the potential sustain the growth momentum. Even though earnings growth will be modest in the 8 to 10 percent range in FY26, there is a high likelihood of above 15 percent earnings growth in FY27. The market will soon start discounting this, paving the way for a rally taking the Nifty to a new record this year itself. In such a scenario FIIs are likely to turn buyers in India.”
Fed rate cut hopes lift global sentiment
Investors grew more confident that the Federal Reserve will cut rates soon, thanks to signs of a cooling labour market and a softer tone from policymakers, said Vested Finance in a note.
Derivatives data signals bullish undertone
Derivative markets also point to a relatively bullish signal.
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said: Derivatives data reflected sustained optimism as put writers maintained dominance over call writers. The 25,500 strike saw heavy open interest buildup of 1.24 crore contracts, confirming it as a strong resistance ceiling. On the flip side, the 25,000 strike attracted the highest put OI of 1.93 crore contracts, reinforcing its role as a solid support base.
Fresh put writing at current levels signals limited conviction for a sharp downside, while incremental call writing at higher OTM strikes reflects early signs of optimism. “The Put-Call Ratio (PCR) rose to 1.32 from 1.18, indicating a bullish undertone and potential for sustained momentum, though intermittent profit-booking cannot be ruled out,” he said.
Published on September 15, 2025