Domestic markets are expected to open flat on Wednesday. Analysts expect buying at low levels, especially quality stocks in the mid-and small-cap space. While global sentiment will impact sentiment, analysts expect a limited downside given the sharp slide since the peak.

Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said: Given weak global cues and lack of domestic triggers, Indian equities are expected to remain largely subdued; though a continued buying interest in the broader market could provide some support to the market.

Gift Nifty at 22,130 indicated a flattish to negative opening as Nifty futures on the NSE closed at 22,191.

Rajesh Bhosale, Technical Analyst, Angel One Ltd, said: the ongoing decline is gradually presenting opportunities to accumulate quality stocks staggered for short to medium-term investments. “On the higher side, immediate resistance is placed at 22250, followed by the bearish gap near the 22450 zone. Overall, while the index remains under pressure, traders are better off focusing on stock-specific opportunities rather than taking aggressive positions on the index itself,” he added.

The derivative segment signals a bearish outlook. Dhupesh Dhameja, Derivatives Analyst at Samco Securities, said the derivatives market continues to exhibit a bearish tilt, with call writers maintaining the upper hand over put sellers, reflecting a cautious approach. The significant open interest build-up at the 22,500-call strike (1.23 crore contracts) establishes a strong resistance level. On the other hand, substantial put accumulation at the 21,500 strike (93.56 lakh contracts) reinforces this zone as a sturdy support base. 

The 22,200–22,500 range remains under intense call writing pressure, while a shift in put writing to lower strikes accentuates the bearish undertone. “The Put-Call Ratio (PCR) has risen from 0.71 to 0.79, underscoring the prevailing negative sentiment in the market. Furthermore, the Max Pain level at 22,300 indicates that despite the heightened volatility, bulls might attempt to absorb declines in the near term,” he said.

Meanwhile, Asia-Pacific stocks are mixed in early deals, with Chinese and Korean stocks edging up even as others, such as Japan and Australia, are down. Overnight, US stocks slumped amidst tough talking on tariffs across countries.