Domestic markets are expected to open on a flat note on Wednesday. NSE Connect futures at 19,508 at NSEIX indicates a flat opening as Nifty futures, on Tuesday, closed at 19,458. Global markets are weak in early deal in Asia Pacific region.

Analysts expect profit-taking to emerge in the later part of the day. However, continuous investments by foreign portfolio investors help market stay afloat. 

Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd, said, “Buoyancy in the markets continued as benchmark indices touched new highs in spite of mixed Asian cues and weak European markets in early trades. The cushion provided by Indian markets on the back of its strong fundamentals is offsetting some negative catalysts seen in key developed economies, and strong backing by FIIs in recent weeks is a testimony to it.

According to analysts, trading in derivative segment indicates a narrow movement for Nifty.

“Open interest data indicates, on the call side, the highest OI witnessed at 19,500 strike prices, while on the put side, the highest OI was at 19,300 followed by 19,200 strike price. Investors can add good quality stocks from Auto, FMCG, and IT sectors; while traders are suggested to book some profits as well and with buy on decline strategy,” said Om Mehra, Equity Research Analyst, Choice Broking.

INDIA VIX could shoot up in the coming days, while the Nifty PCR settles at 1.48.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, “The upside momentum continued in the market for the sixth consecutive session on Tuesday, and Nifty closed the day with gains of 66 points amidst volatility. After opening with an upside gap of 84 points, the market slipped into minor weakness in the early part of the session. It later shifted into an upside recovery mode from the days low and closed near the highs. New all time high was registered at 19,434 levels.

“The positive chart pattern like higher tops and bottoms is intact as per daily timeframe chart and any weakness from here is likely to be a buy on dips opportunity,” he said and added, “On the upper side, the area of 19,450-19,500 could be a strong overhead resistance.”