The Indian stock market benchmark indices, Sensex and Nifty 50, opened on a tepid note on Tuesday, as sentiment remains cautious over the elevated crude oil prices and geopolitical tensions in the Middle East. Market volatility is expected to remain high due to the weekly and monthly derivatives expiry, while focus will also be on the US Federal Reserve's monetary policy meeting and the ongoing Q2 results.
The Sensex opened 122.37 points, or 0.17% lower, at 73,484.38, while the Nifty 50 declined 44.40 points, or 0.20%, to open at 22,708.80. The Bank Nifty index opened at 54,420.70, up by 54.00 points, or 0.10%.
Broader markets outperformed the frontline indices as the Nifty Smallcap 100 index rallied 1% and the Nifty Midcap 100 index gained 0.20%.
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Among sectors, Nifty IT, Nifty FMCG, Nifty Oil & Gas and Nifty Private Bank indices witnessed losses, while Nifty Auto, Nifty Pharma, Nifty PSU Bank and Nifty Realty were in the green.
In the currency market, the Indian rupee opened 2 paise higher at 95.17 against the US dollar as compared with its previous close of 95.19 level.
Investors remain cautious amid high crude oil prices, persistent geopolitical tensions and continued rupee weakness. Meanwhile, the ongoing Q2 results seasons will also be eyed for stock specific movements.
“Brent crude remaining above $114 and the US 10-year bond yield hovering around 4.97% continue to be near-term headwinds for the market. FIIs will remain in a risk-off mode in this adverse macro setting. However, the improving fundamentals of the corporate sector as reflected in Q2 earnings and the robust domestic fund inflows will continue to support the market,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
Technical Outlook
Nifty 50 is hovering around the 22,700 zone, while the 22,800 level continues to act as a major resistance.
According to Ponmudi R, CEO of Enrich Money, the Nifty 50 index needs to decisively break and sustain above this resistance zone to extend its recovery towards the psychological 23,000 mark.
“On the downside, 22,500 is likely to act as the immediate support zone. A decisive break below this level could weaken the recovery and drag the index towards the 22,400–22,300 range,” said Ponmudi R.
From a technical perspective, the RSI stands near 46, indicating that momentum has improved but remains below the neutral 50 mark. The MACD line remains above the signal line, while the positive histogram indicates improving short-term momentum.
“However, the broader trend remains under pressure, and sustained buying participation will be necessary to confirm a stronger reversal,” he added.
Nifty Options Data
The Nifty options open interest (OI) data shows cumulative call OI of 23.79 crore against put OI of 26.61 crore, indicating a higher concentration of put positions overall.
“On the strike-wise OI chart, significant call OI concentration around 23,000 suggests overhead resistance, while notable put OI around 22,400–22,500 points to an important support area. These positions suggest that the 22,500 zone will be important in sustaining the current recovery,” said Ponmudi R.
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