Indian equity markets are expected to open on a cautious and largely flat note on Wednesday, February 18, as investors weigh mixed global cues against the absence of strong domestic triggers. Early indicators suggest that benchmark indices may struggle to find clear direction at the start of trade, extending the consolidation phase seen over the past few sessions. After modest gains in the previous session, participants appear reluctant to take aggressive positions, preferring to await fresh cues on global growth, interest rates and corporate earnings.
Overnight cues from global markets have been muted, offering little momentum for a decisive move. Asian markets are trading mixed, while Wall Street’s latest session ended without a strong directional bias, reflecting ongoing uncertainty around global economic conditions and monetary policy trajectories. This cautious global backdrop is likely to keep risk appetite in check for domestic investors, particularly after recent volatility in heavyweight stocks.
Within the Indian market, sectoral performance is expected to remain selective. Banking and financial stocks, which have shown relative resilience in recent sessions, may continue to attract interest, supported by stable asset quality expectations and steady credit growth outlook. IT stocks could see stock-specific action, though sentiment remains guarded amid concerns over global tech spending and currency movements. Capital goods and infrastructure-linked stocks may remain in focus as investors position themselves for medium-term public spending and order inflow themes, even as near-term triggers remain limited.
The rupee is expected to trade in a narrow range against the US dollar, with mild pressure from broader Asian currency weakness likely to be offset by central bank support. Currency stability could help limit sharp moves in equities, particularly in sectors sensitive to foreign flows. Commodity prices, including crude oil, have not shown sharp swings, reducing immediate inflation-related concerns for the market.
From a technical perspective, market participants are closely watching key support and resistance levels, as the indices remain locked in a tight range. A sustained move above recent highs could trigger short covering and a mild uptick in momentum, while a break below near-term support levels may invite profit booking. Until such levels are decisively breached, traders are likely to adopt a buy-on-dips or sell-on-rallies approach rather than directional bets.
“Though the market may see the session on a slightly positive footing, some near-term caution persists due to selective profit booking in richly valued segments and mixed global signals,” says R Ponmudi, a senior market analyst and CEO at broking and wealth tech firm Enrich Money.
Overall, the market mood for the day appears cautiously neutral. With no major economic data or policy announcements scheduled, trading is expected to be driven by global cues, institutional flows and stock-specific developments. Investors may continue to focus on quality names and defensives while keeping an eye on volatility, as the broader trend suggests consolidation rather than a sharp breakout in the near term.