Indian equity markets are set to open on a positive note on Wednesday, tracking gains in global markets. GIFT Nifty futures were trading 40 points higher at 23,028.50, indicating a steady start for benchmark indices. However, volatility is expected to persist as investors eye key events, including the upcoming Union Budget and the Federal Reserve’s policy decision.

The Nifty50 remains under bearish control as long as it stays below the 23,000-mark on a closing basis. On the downside, immediate support is placed at 22,800, and a breach below this level could push the index towards 22,500. However, if the index manages to close above 23,000, some short-term relief could be expected.

Wall Street rebounded on Tuesday, led by gains in technology stocks, particularly Nvidia and other AI-linked firms. The Dow Jones Industrial Average rose 0.3 percent, while the S&P 500 and Nasdaq surged 0.9 percent and 2 percent, respectively.

Asian markets mirrored Wall Street’s recovery, with Japan’s Topix rising 0.5 percent and Australia’s S&P/ASX 200 gaining 0.8 percent in early trade. Meanwhile, European futures were largely unchanged as investors await further cues from global markets.

Foreign institutional investors (FIIs) remained net sellers, offloading Rs 4,921 crore worth of equities on Tuesday. However, domestic institutional investors (DIIs) stepped in, buying shares worth Rs 6,814 crore, providing support to the market.

The rupee depreciated by 26 paise, closing at 86.57 against the US dollar, amid concerns over global trade policies. Meanwhile, India VIX, the volatility index, inched up 0.3 percent to 18.2, reflecting cautious sentiment among traders.

Despite a positive start, market volatility is expected to remain high due to key upcoming events, including the Union Budget, the Federal Open Market Committee (FOMC) meeting, and the F&O expiry. Investors are likely to focus on banking and large-cap stocks, while mid- and small-cap segments may remain under pressure due to valuation concerns.