Domestic markets are likely to see a flat opening on Wednesday amid mixed global signals. Gift Nifty at 25,755 indicates a marginal decline at opening.
Hariprasad K, Research Analyst and Founder, Livelong Wealth, said: After two modestly bullish sessions, the index may look to extend its bullish momentum in the near term, provided the initial gains are sustained. As the market approaches higher levels, traders are expected to remain selective, focusing on stock-specific opportunities rather than broad-based purchases. Sustained strength will be key to maintaining the positive bias, while any inability to maintain early gains could trigger a consolidation.
“IT stocks are likely to remain under focus as the sector has been under sustained pressure over the past week amid concerns about AI-driven disruption of traditional IT service models,” he added.
Analysts expect the market to remain volatile. However, third-quarter results were better than expected, analysts said.
Emkay Global Research said the positive trend in Q3FY26 earnings reinforces its positive stance on Indian stocks. Despite the impact of the labor code, the BSE-500 achieved PAT growth of 16%, outperforming the Nifty 50 (8%).
“We remain bullish on Indian stocks, with the India-US trade deal announcement marking a turning point for markets. We maintain a Nifty target of 29,000 by December 26, with our favorite themes being SMID lenders, internet/new-age companies and consumer discretionary,” he added.
According to WhiteOak Capital Mutual Fund, its internal model, the market valuation index, fell to 99 in January 2026 from 100.5 in December 2025. The market valuation index uses primary fundamental indicators, such as price-to-book (P/B) adjusted for return on equity (ROE), and the ratio of government bond yields to earnings yield. It also incorporates a volatility index (VIX) overlay and a ‘holding philosophy’ to account for volatility and trend strength respectively.
As of Jan. 31, 2026, WhiteOak Capital Balance Advantage Fund’s net capital level increased from 59.2% in December 2025 to 65.89% in January 2026, it said.
Meanwhile, Asian stocks rose in early trading on Wednesday.
Posted on February 18, 2026