Indian benchmark indices kicked off Tuesday’s trading session on a flat note, opening with a brief gap-down before stabilising early on. The muted start coincided with a mild drop in international crude oil prices following reports of diplomatic mediation between the United States and Iran. During early trade, the Sensex dipped slightly by 10.77 points (0.01 per cent) to hover around 77,697.75, while the Nifty 50 moved up by 17 points (0.07 per cent) to reach 24,255.50. The Sensex had started the morning at 77,649.63, down from its previous close of 77,708.52.
Similarly, the Nifty opened at 24,216.05 against its prior close of 24,238.50. Broad-market trends showed steady interest, with the majority of sectoral indices moving into positive territory. Nifty Cement led the morning gains with an increase of 1.10 per cent. Within the Sensex basket, notable gainers included Tech Mahindra, ICICI Bank, Kotak Mahindra Bank, State Bank of India, Bharti Airtel, Tata Steel, Asian Paints, HCL Tech, TCS, Infosys, Larsen & Toubro, and NTPC. On the flip side, major drag came from Eternal, Axis Bank, Maruti Suzuki, HDFC Bank, and Trent. In commodity markets, crude prices eased slightly as diplomatic efforts between Washington and Tehran helped cool immediate worries over supply disruptions.
The pull-back occurred despite lingering regional tensions, including fresh threats from Yemen's Houthi rebels regarding a potential naval blockade on Saudi Arabia. Brent crude dropped to around USD 88.56 per barrel from its previous close of USD 89.22, after briefly touching an intraday high of USD 89.01. West Texas Intermediate (WTI) crude traded near USD 82.18 per barrel. On the currency front, the Indian rupee strengthened marginally, opening at 96.41 against the US dollar compared to its previous finish of 96.44.
The market analyst Ajay Bagga mentioned that the risk sentiment in the global market still leans towards the conservative side. The overnight session on Wall Street ended lower as a result of persistently high crude oil prices and higher US treasury yields, although the stocks from the technology sector and those related to artificial intelligence appear to be stabilising themselves. Although there were some contrasting performances among the markets in Asia, the GIFT Nifty was signalling a weak beginning for India’s stock market.
Nevertheless, robust DII flows remain persistent enough to act as a protective factor against FPI selling pressure.
According to an analysis of the charts, Ponmudi R., CEO of Enrich Money, observed that the 24,300-24,400 level is a vital resistance level for the Nifty as it comes in line with 200-day Exponential Moving Average (EMA). A breakout above this level will be bullish enough to drive the index towards 24,500-24,600 levels.
Market analyst Vipin Dixena observed that the lacklustre start of the session was due to weak international sentiment, expensive energy prices, and geopolitical events in West Asia. He expects the market to test its opening boundaries in the initial hour of trade. Strong support currently sits at 24,200; maintaining this level could spark a quick rebound, whereas a slip below it might trigger a wave of profit-booking towards the 24,000 mark.
Also read: Sensex crashes 700 pts, Nifty falls 180 pts in early trade
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