Derivative indicators also point to a neutral-to-range-bound outlook, with strong resistance near the 23,800–24,000 zone and support around 23,500–23,300.
Indian markets are likely to open on flat note despite positive global cues amidst steep fall in crude oil prices. Analysts expect consolidation phase to continue with funds moving across sectors. Indian markets remain highly sensitive to crude oil volatility, currency movements, and global liquidity conditions. The broader market structure continues to favor selective stock-specific opportunities over aggressive broad-based bullish positioning, said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth. smallcase Managers believes that FY27 is likely to be an earnings-led market rather than a valuation-led rally, with investors likely to focus on sustainable profitability and execution rather than aggressive multiple expansion. They expect the NIFTY 50 and Sensex to witness gradual gains driven by earnings growth, with alpha generation likely to remain concentrated in select sectors and stock-specific opportunities. Ashwini Shami, smallcase Manager, President and Chief Portfolio Manager, OmniScience Capital said, “We expect NIFTY 50 to be in the range of 28,000–30,000 in FY27, a potential upside of nearly 15%–25% from current levels, supported by continued strength in sectors such as Banking, Capital Goods, Telecom, and domestic manufacturing themes.”Recapping FY26 earnings, the managers highlighted that FY26 was not a broad-based upcycle, but a selective recovery that rewarded visibility, pricing power, and balance-sheet strength. It was a year where earnings quality mattered more than earnings breadth. FY26 ultimately separated cyclical hope from structural proof, with the market rewarding earnings visibility rather than average growth. Meanwhile derivative trading also signals cautious outlook.Dhupesh dhameja, Derivatives Research Analyst, SAMCO Securities said the options data reflects a neutral-to-range-bound undertone. “The PCR stands near 0.94, indicating balanced positioning between put and call writers. Significant call writing is visible near the 23,800–24,000 strike region, highlighting strong resistance at higher levels, while put writers continue to defend the 23,500–23,300 zone, indicating that downside support remains intact for now. Overall, the market structure suggests that Nifty is currently in a time-wise corrective phase, going ahead, a decisive close above the 23,800 zone could trigger short covering and improve sentiment toward 24,000–24,250 levels, while failure to hold above the lower consolidation base may once again invite volatility in the coming sessions,” he added.Meanwhile, Asian stocks are up in early date.Published on May 22, 2026
