Mumbai (Maharashtra) [India], August 18 (ANI): The Indian benchmark indices opened on a bearish note on Tuesday, with Sensex sliding over 300 points and Nifty below the 24,300 level as elevated crude oil prices and renewed geopolitical concerns continue to weigh on investors’ sentiment.
Brent crude climbed USD 91 per barrel while WTI topped USD 85 after President Trump said he would not extend the expiring US-Iran memorandum and threatened military action against Oman over alleged interference in the Strait of Hormuz. Tanker traffic through the Strait has fallen to a fraction of pre-war levels.
Amid this backdrop, the benchmark indices opened with a gap down; Sensex opened at 77,418.97 against the previous close of 77,728.16 and was trading at around 77,442.77, down 285.39 points or 0.37%. Nifty opened at 24,223.85 against the previous close of 24,287.65 and was trading at around 24,230.40, down -57.25 points or 0.24% at the time of reporting.
Broad market indices largely traded in the green while pressure was seen in several sectoral indices. Nifty IT and FMCG were the top drags, sliding over a per cent in the early morning trade, while Nifty Realty and Metal emerged as the top sectoral gainers, surging over a per cent.
On BSE, M&M, Eternal, Sun Pharma, Maruti, BEL, Tata Steel, Reliance, among others were the top gainers. Infosys, Indi Go, Asian Paints, HCL Tech, Tech Mahindra, LT, among others were the top drags.
Likewise, on NSE, ONGC, M&M, Bajaj Auto, Grasim, Sun Pharma, Coal India, Axis Bank, among others were the top gainers. Infosys, Bharti Airtel, Indi Go, Hindustan Unilever, Bajaj Finserv, ITC, among others were the top losers.
In the commodity market, Brent crude was trading at around USD 91.41 per barrel while crude oil was trading at around USD 85.26 per barrel at the time of reporting.
According to market analyst Vipin Dixena, the Indian market is likely to remain under pressure today as elevated crude oil prices and renewed geopolitical concerns continue to weigh on sentiment. He noted that Nifty has declined for five consecutive sessions, while FII selling remained a concern in the previous session. However, as per the analyst, strong DII buying and the recovery from Monday’s intraday lows suggest that domestic investors are still providing some cushion to the market.
From a technical perspective, “Nifty is now approaching the crucial 24,200 support zone. I believe holding this zone is important to prevent further weakness. On the upside, 24,360-24,400 remains the immediate hurdle, and a sustained move above this zone could bring some recovery momentum back into the index,” Dixena added.
Noting Nifty declined for the fifth consecutive session yesterday, losing 78 points to close at 24,287 — its lowest level since 29 July, Devarsh Vakil, HSL Prime Research, highlighted Indian rupee weakened by 17 paise yesterday to close at 95.60 per dollar, hitting a two-week low as the Reserve Bank of India shortened the deadline for its discounted forex swap facility for non-resident deposits, raising concerns about future dollar inflows.
As per Vakil, the short-term trend for Nifty remains weak, with the index trading below its short-term averages. Immediate support is placed around 24,200, near its 50-day EMA. “On the upside, 24,430 and 24,600 are likely to act as key resistance zones,” he noted. (ANI)
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