1 day ago
Markets Brace for Volatility as Crude Prices Rise
Indian stock markets were expected to start lower on both Tuesday and Wednesday.
GIFT Nifty fell before trading began on each day.
Asian and American shares also dropped.
Fighting involving the United States and Iran pushed oil prices higher.
More expensive oil can make people worry that prices will rise and interest rates may stay high.
Foreign investors sold Indian shares, while Indian institutions bought some shares.
Analysts said the Nifty could recover if it stays above important levels near 24,000.
They also warned that it could fall toward 23,800 if those levels break.
Nifty Bank was moving sideways between support and resistance levels.
GIFT Nifty signaled weaker openings on Tuesday and Wednesday, falling 66.40 points to 24,185 and later 53.80 points to 24,036.50.
Asian and US stocks declined as renewed US-Iran conflict pushed oil prices higher and revived inflation and monetary-policy concerns.
Foreign portfolio investors sold Indian equities, while domestic institutions bought them: Rs 7,985.88 crore versus Rs 4,588.88 crore on Monday, and Rs 1,143.38 crore versus Rs 1,846.94 crore on Tuesday.
Analysts placed key Nifty support near 24,000 and 23,990, with further downside toward 23,800 if support breaks; a move above 24,150-24,200 could prompt a short-term rebound.
Nifty Bank remained in consolidation, with resistance around 58,000-58,300 and support between roughly 56,500 and 57,000.
- Who
- Indian equity markets, foreign portfolio investors, domestic institutional investors, and market analysts.
- What
- GIFT Nifty indicated weaker domestic openings, while analysts assessed support, resistance, and consolidation levels for the Nifty, Sensex, and Nifty Bank.
- Where
- Indian markets, with related signals from Asian and US markets and global commodity and bond markets.
- When
- The outlooks covered Tuesday and Wednesday trading sessions, following market activity on the preceding days.
- Why
- Renewed US-Iran conflict and attacks pushed crude prices higher, reviving inflation concerns and worries about tighter monetary policy.
Rebound Potential
Downside and Consolidation Risks
Nifty and Sensex direction
Rebound Potential
Holding above 24,000 on the Nifty and 76,600 on the Sensex could produce a technical rebound toward 24,200-24,300 and 77,300-77,500.
Downside and Consolidation Risks
A sustained break below those levels could accelerate selling toward 23,850-23,800 on the Nifty and 76,300-76,000 on the Sensex.
Nifty technical outlook
Rebound Potential
Positive divergence in the hourly RSI and a move above 24,150-24,200 could support a short-term rise, potentially adding about 100 points.
Downside and Consolidation Risks
Higher levels may act as resistance, while a break below support near 23,990 could resume the correction toward 23,800.
Nifty Bank direction
Rebound Potential
Sustaining above 58,000 could open an advance toward 58,500-58,700.
Downside and Consolidation Risks
Failure to hold above 58,000 could keep the index consolidating around 57,000-58,000; a break below 57,000 could extend declines toward 56,500-56,200.
Key facts
- GIFT Nifty readings
- It fell 66.40 points to 24,185 ahead of Tuesday's session and 53.80 points to 24,036.50 ahead of Wednesday's session.
- Foreign investor flows
- FPIs were net sellers of Rs 7,985.88 crore on Monday and Rs 1,143.38 crore on Tuesday.
- Domestic investor flows
- DIIs were net buyers of Rs 4,588.88 crore on Monday and Rs 1,846.94 crore on Tuesday.
- Nifty levels
- Support was cited near 24,000 and 23,990; a break could expose 23,800, while a move above 24,150-24,200 could support a rebound.
- Sensex levels
- Support was identified at 76,400-76,600, while sustained movement above 77,300-77,500 could improve the short-term structure.
- Nifty Bank range
- The broader consolidation range was placed at 56,500-58,700, with immediate resistance near 58,000-58,300.
- India VIX
- India VIX rose 4.78% to 11.19 in one outlook and was later described as subdued near 11.49.
Quotes
Shrikant Chouhan
Head of equity research at Kotak Securities
“The technical setup continues to indicate a consolidation phase, with key momentum indicators and oscillators pointing towards a sideways market structure. Going forward, the 58,200-58,300 zone is likely to act as an immediate resistance area for the index. On the downside, the 57,500-57,400 zone remains an important support.”
businesstoday.in
businesstoday.in
“It could bounce up to 24,200-24,300/77,300-77,500. However, below 24,000/76,600, selling pressure may accelerate. If it falls below this level, it could slip to 23,850-23,800/76,300-76,000.”
businesstoday.in
Sources
Related news
Indian Markets Face Cautious Open as Technical Weakness Persists
GIFT Nifty Signals Shift From Positive To Negative Market Open
GIFT Nifty Slips; Nifty, Sensex, Bank Nifty Outlook
Nifty, Sensex outlook: GIFT Nifty slips, crude hits multi-week highs
GIFT Nifty Signals Positive Start as Key Levels Guide Trade
Nifty Holds Range as Small-cap Index Sets Record High
Sensex, Nifty end lower; Bagadia recommends five breakout stocks
Kotak suggests Nifty bull call spread; sees breakout above 24,700
