3 hrs ago
Indian Stocks Face Cautious Open as Crude Nears $102
Indian stock markets may start Thursday on a weak note.
The Sensex and Nifty 50 both fell sharply in the previous session.
GIFT Nifty also suggested a cautious opening.
Analysts said the Nifty 50 could weaken further if important support levels break.
They also said some smaller companies have been performing better than the main index.
Higher crude oil prices are a concern because they can increase inflation and business costs.
Oil prices rose after attacks involving Iran and the United States disrupted supply concerns.
Gold prices changed very little while investors waited for United States inflation data.
Several analysts also listed stocks they believed could rise, along with suggested stop-loss and target prices.
Sensex fell 813.35 points to 74,764.23, while Nifty 50 declined 203.60 points to 23,431.50 in the previous session.
GIFT Nifty indicated a flat-to-negative opening, trading around 23,477.5 at 7:16 a.m., according to the article.
Analysts identified 74,500–74,600 as Sensex support and 23,070 as the next important Nifty 50 downside level.
Brent crude traded near $102 a barrel amid reported shipping attacks involving Iran and the United States.
Gold was nearly unchanged near $4,396.69 per ounce as investors awaited key United States inflation data.
- Who
- Indian stock-market investors, analysts, and traders; Iran and the United States were also cited in the oil-market report.
- What
- Indian benchmark indices were expected to open lower after a sharp previous-session decline, while crude oil remained above $100 a barrel and gold was stable.
- Where
- Indian equity markets, with global commodity and financial markets also influencing sentiment.
- When
- Thursday, 10 September; the previous trading session ended lower, and the commodity prices cited were recorded early Thursday.
- Why
- Elevated crude prices, rising bond yields, weak global sentiment, and concerns about inflation, interest rates, the rupee, the current account, and corporate margins weighed on the outlook.
Bearish Outlook
Recovery Possibility
Near-term index direction
Bearish Outlook
Analysts said the Sensex and Nifty 50 showed weakness, with the Nifty 50 forming a long bearish candle and potentially declining toward 23,070.
Recovery Possibility
A technical recovery or bargain buying could emerge if the market holds the 23,400–23,300 area and the Sensex reclaims 75,000–75,200.
Crude oil impact
Bearish Outlook
A sustained Brent breakout above $102 could pressure Indian equities through inflation, rupee, current-account, and corporate-margin concerns.
Recovery Possibility
Another rejection of the $102 level could ease pressure on Indian equities.
Broader market condition
Bearish Outlook
The main benchmark indices had sharp declines and retained bearish short-term patterns.
Recovery Possibility
Midcap, small-cap, and microcap indices recorded relatively smaller declines and were described as retaining broadly bullish chart patterns.
Key facts
- Previous Sensex close
- 74,764.23, down 813.35 points or 1.08%
- Previous Nifty 50 close
- 23,431.50, down 203.60 points or 0.86%
- GIFT Nifty indication
- Around 23,477.5 at 7:16 a.m., described as a discount of 87 points to the previous Nifty futures close
- Sensex levels
- Support at 74,500–74,600; resistance at 75,000–75,200
- Nifty 50 levels
- Next downside level near 23,070; pullback resistance near 23,625
- Bank Nifty levels
- Support at 55,900–55,800; resistance at 56,800–56,900
- Commodity prices
- Brent near $101.34–$102 a barrel; spot gold near $4,396.69 per ounce
- Published stock ideas
- Analysts recommended Sai Life Sciences, Finolex Cables, BHEL, Vedanta, Alkem Laboratories, Fujiyama Power Systems, Rajratan Global Wire, and JSW Infrastructure with stated targets and stop-loss levels.
Quotes
Hariselvan Radhakrishnan
Founder and CEO of HST Wealth
“Indian equities are likely to open flat to mildly negative, with GIFT Nifty indicating a cautious start. Global sentiment remains weak as elevated crude oil prices and rising bond yields revive concerns about inflation and interest rate outlooks. Beyond the opening, the market's response around the 23,400-23,300 zone will be crucial in determining whether the decline extends further or bargain buying sparks a technical recovery.”
livemint.com
“The price action indicates strong downside momentum in the Nifty 50. However, broader market indices, including the midcap, small-cap and microcap segments, have outperformed the benchmark with relatively smaller declines and continue to show overall bullish chart patterns.”
livemint.com
Sources
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