17 February 2026 (Navroze Bureau) : Indian equity markets are set for a cautious to weak opening as GIFT Nifty slipped around 70 points in early trade, reflecting negative global cues and continued pressure on information technology stocks. The decline indicates that benchmark indices may start the session on the back foot, with investors adopting a risk-averse stance.
GIFT Nifty, which serves as an early indicator for domestic markets, was trading lower amid mixed signals from Asian peers and overnight weakness on Wall Street. Market participants are closely tracking global developments, including bond yield movements, currency volatility, and expectations around central bank policy.
On Tuesday, Indian markets closed sharply lower, with heavy selling seen in IT, metal, and select banking stocks. The benchmark Nifty 50 ended below key psychological levels, while the Sensex posted one of its steepest single-day declines in recent weeks. The negative momentum appears to be carrying forward into today’s session.
Global Cues Weigh on Sentiment
Weakness in global equities has been one of the primary drags on sentiment. US markets ended lower overnight as investors reacted to persistent concerns over interest rates staying higher for longer. Technology stocks, in particular, faced selling pressure, which has had a spillover effect on Indian IT shares.
Asian markets opened mixed, with some indices attempting a mild recovery while others tracked US losses. The lack of a clear directional trend globally is likely to keep Indian markets volatile through the day.
Crude oil prices remained firm, raising concerns about inflationary pressures, while the dollar index held near recent highs. A strong dollar typically weighs on emerging market equities by triggering foreign fund outflows.
Institutional Activity in Focus
Foreign institutional investors (FIIs) have been net sellers in recent sessions, adding to market pressure. Analysts say continued FII outflows could limit any meaningful upside in the near term. Domestic institutional investors (DIIs), however, have been selectively buying on declines, offering some support to frontline indices.
Market experts believe today’s session could see range-bound trading with a negative bias unless there is a sharp improvement in global cues.
Key Levels to Watch
From a technical perspective, the Nifty 50 faces immediate resistance near the 25,600–25,650 zone. A sustained move above this range could trigger short-covering and a technical bounce. On the downside, support is seen around 25,400, followed by a stronger base near 25,300.
If the index breaks below key support levels early in the session, selling pressure could intensify, particularly in heavyweight stocks. Traders are advised to maintain strict stop-losses given elevated volatility.
The Sensex, meanwhile, is expected to find support near the 83,500 level, while resistance is placed around 84,200.
Sectoral Outlook
IT stocks are likely to remain under pressure amid concerns over global tech spending and currency movements. Banking and financial stocks may see selective buying, especially in large private lenders, though overall sentiment remains cautious.
Auto and FMCG stocks could provide relative stability due to defensive buying, while metal stocks may remain volatile in line with global commodity trends. Midcap and smallcap stocks are expected to underperform the benchmarks, as risk appetite remains subdued.
Trading Strategy for the Day
Market participants are advised to adopt a cautious approach. Short-term traders may look to sell on rallies until a clear reversal signal emerges. Stock-specific action is likely to dominate, with opportunities in fundamentally strong names that have corrected sharply in recent sessions.
Intraday traders should keep an eye on global market cues, currency movements, and bond yields, as these could drive sudden swings. Volatility is expected to remain high, making disciplined trading essential.
For long-term investors, analysts suggest using sharp declines to accumulate quality stocks gradually, rather than attempting to time the market bottom.
Outlook
With GIFT Nifty indicating a weak start, today’s session could be another test of investor patience. While near-term sentiment remains fragile, market experts believe that strong domestic fundamentals and earnings visibility could limit deeper corrections over the medium term.
As the trading day unfolds, all eyes will be on global cues and institutional flows to determine whether markets can stabilise or extend their recent losses.
Summary
GIFT Nifty’s 70-point decline signals a weak start for Indian markets today, with global cues, FII selling, and IT sector pressure likely to keep sentiment cautious and volatility elevated.