New Delhi [India], October 13 (ANI): Indian stock markets opened lower on Tuesday but recovered to trade in positive territory, amid weak global cues and concerns over elevated crude oil prices.
The BSE Sensex declined 192.47 points, or 0.27 per cent, to 71,732.21 in early trade, while the NSE Nifty fell 45.80 points, or 0.20 per cent, to 22,317.30.
Global markets remained under pressure, with Wall Street ending on a mixed note overnight as rising oil prices and inflation concerns weighed on investor sentiment.
Hemang Gor, Senior Research Analyst – Derivatives and Technical Research at Axis Direct, said the Dow Jones gained 0.38 per cent, while the Nasdaq declined 0.44 per cent and the S&P 500 fell 0.06 per cent.
He attributed the mixed performance to a 2 per cent rise in oil prices following attacks on Riyadh’s international airport and a surge in the dollar index to an 18-month high. Investors are also awaiting US inflation data and the start of third-quarter earnings announcements by major banks.
Asian markets largely traded in the red, with South Korea’s KOSPI falling 6.62 per cent to 5,961.34. Japan’s Nikkei 225 declined 2.32 per cent, while Taiwan’s Weighted Index dropped 1.67 per cent.
Hong Kong’s Hang Seng fell 0.50 per cent, Indonesia’s Jakarta Composite declined 0.57 per cent, and China’s Shanghai Composite slipped 0.27 per cent.
In contrast, India’s GIFT Nifty gained 0.29 per cent, or 65 points, to 22,435.50. Singapore’s Straits Times Index rose 16.46 points to 5,436.29, while Thailand’s SET Composite remained flat at 1,571.74.
Gor said crude oil prices had eased slightly but remained elevated. At the time of reporting, Brent crude fell USD 1.14, or 1.06 per cent, to USD 105.51 per barrel, while West Texas Intermediate (WTI) crude declined USD 1.04, or 1.11 per cent, to USD 92.70 per barrel.
“Meanwhile, crude has eased slightly, with Brent hovering near USD 106 per barrel, remaining structurally elevated,” Gor noted
Gold prices edged up USD 6.68, or 0.16 per cent, to USD 4,178.56.
On the domestic market outlook, Gor said investor sentiment remained cautious amid technical weakness. The Nifty’s Relative Strength Index (RSI) stood at 34, approaching oversold territory, indicating that selling pressure may be easing.
However, he said a sustained recovery would remain uncertain as long as the index trades below the 22,500–22,600 range. He identified 22,300 as an immediate support level, adding that a breach could push the index towards its 52-week low near 22,180.
Shrikant Chouhan, Head of Equity Research at Kotak Neo, said 22,300 on the Nifty and 71,700 on the Sensex were crucial support levels.
A break below these levels could increase selling pressure, taking the Nifty towards 22,200–22,150 and the Sensex towards 71,300–71,200, he said. A close below 22,150 on the Nifty would further weaken the market outlook.
On the upside, Chouhan identified 22,500 on the Nifty and 72,500 on the Sensex as immediate resistance levels. A sustained move above these levels could support a recovery towards 22,640 on the Nifty and 73,000 on the Sensex.
“Overall, the market remains volatile and lacks a clear directional trend. Therefore, traders should focus on key technical levels and adopt a disciplined, level-based trading strategy,” Chouhan said. (ANI)
Related reading
