The Indian equity benchmarks ended their day on a lower note on Tuesday amid uncertain global cues regarding the US-Iran war. Nifty's may continue its weakness in the coming session, according to analysts.
"On the daily chart, Nifty formed a small-bodied candle with a prominent upper wick, highlighting selling pressure at higher levels," said Sudeep Shah Head of Technical and Derivatives Research at SBI Securities.
Immediate support for the index is placed between 23,850 And 23,800 levels.
"Any sustainable move below this zone could result in Nifty extending its weakness towards 23,650, followed by 23,500 in the short term," Shah outlined. On the flipside, the 24,200–24,250 zone is likely to act as an immediate resistance.
According to Siddhartha Khemka, Head of Research at Wealth Management Motilal Oswal Financial Services, markets are likely to tread on the side of caution on the basis of the ongoing geopolitical developments, the movement in crude oil price and foreign fund outflows.
"In the near term, global cues will also be driven by the upcoming US Federal Reserve policy decision, which will be closely tracked for signals on interest rates and liquidity conditions," Khemka added.
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Bank Nifty
The Nifty bank index continued to underpeform the benchmark on Tuesday. Analysts expect the negative bias to continue going ahead.
"Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 54400, followed by 54000 in the short term," pointed out Sudeep.
Accordingly, immediate support levels are placed between 54,900 and 54,800, while on the flipside the zone of 55900–56000 zone is likely to act as an immediate resistance.
Market Recap
India's benchmark equity indices ended lower on Tuesday, after seesawing between gains and losses, as investor sentiment turned cautious on higher oil prices and Middle East tensions. Banks fared the worst during the session.
The Nifty 50 settled 97 points or 0.4% lower at 23,995.70. The BSE Sensex shed 416.72 points or 0.5% to close at 76,886.91.
Axis Bank and Maruti Suzuki were the top percentage losers on the blue-chip index. ONGC and Adani Enterprises gained the most.
On the NSE, the Nifty PSU Bank index was the top loser, followed by Nifty Bank and Nifty Auto. On the other hand, Nifty Oil and Gas gained the most.
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