Stock market today: Will Sensex, Nifty continue its rally or open lower?

Stock markets are likely to open lower on Wednesday, snapping a four-session winning streak, as investors turn cautious ahead of the outcome of the US midterm elections. Weak signals from global markets and profit-booking after the recent rally could weigh on sentiment at the opening.GIFT Nifty futures were trading at 23,711 as of 7:51 am, indicating a weaker start for the Nifty 50. The index closed at 23,810.85 on Tuesday, while the Sensex settled at 76,917.85.The benchmark indices have gained around 5% over the past four sessions and ended Tuesday at their highest levels in two months. The rally was supported by encouraging corporate earnings, easing crude oil prices and early signs of a revival in foreign investor inflows.However, investors are now closely tracking the US midterm election outcome, which could have implications for the Middle East conflict, energy prices, artificial intelligence infrastructure spending and the US fiscal outlook. These developments are important for Indian markets, particularly given the impact of higher energy prices and India's relatively limited exposure to AI-linked stocks. GLOBAL CUES REMAIN WEAKAsian markets were down around 0.7% on Wednesday, while US stock futures also slipped as investors assessed the possible political implications of the midterm elections. The results could determine whether Democrats wrest control of Congress from President Donald Trump's Republicans.Crude oil prices remain another important factor for domestic equities. Brent crude futures hovered around $103 per barrel on Wednesday, after falling to a nearly four-week low in the previous session. Markets are weighing the possibility of diplomatic efforts helping ease the conflicts in Ukraine and Iran. Any sustained moderation in oil prices could offer some relief to India, which remains sensitive to energy costs.FIIs RETURN, OFFERING SUPPORTForeign investor activity has provided some encouragement to domestic markets. Foreign institutional investors (FIIs) were net buyers of Indian shares worth Rs 6,837 crore on Tuesday, according to provisional data. They have been net buyers in five of the past six trading sessions.The return of foreign buying, after a prolonged period of outflows, has helped strengthen market sentiment. Investors are also tracking possible tax-policy developments after Sebi backed the removal of long-term capital gains tax on foreign portfolio investments.Ponmudi R, CEO of wealth tech platform Enrich Money, said signs of a possible easing in sustained foreign investor outflows, along with softer energy prices and optimism around potential tax-policy developments, could help support domestic market sentiment.NIFTY SUPPORT AND RESISTANCE LEVELSGaurav Udani, Founder of Thincredblu Securities, expects the Nifty to open around 23,750, indicating a mildly negative start."After the sharp rally seen in recent sessions, the market may now witness some consolidation and profit-booking as investors look to lock in gains," he said.Udani sees immediate support for the Nifty in the 23,600–23,650 range, while resistance is likely around 23,900–24,000.While the broader momentum remains positive, he expects some moderation after the recent gains. He advised traders against chasing the rally and said buying opportunities could emerge on dips, provided key support levels hold.A sustained move above 24,000 could extend the rally, while a break below the support zone may lead to deeper consolidation.The market's near-term direction is likely to depend on the US midterm election outcome, movements in crude oil prices and the sustainability of foreign investor buying. Investors will also track corporate earnings and global cues for signs of whether the recent recovery can continue.After four consecutive sessions of gains, some consolidation would not be unusual. However, continued FII inflows and easing energy prices could help limit downside pressure.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends