Indian equity benchmarks ended the day higher on Tuesday as declining crude oil prices lifted investor sentiment. However, GIFT Nifty and mixed signals on Iran-US truce discussions indicate a gap-down opening.
The GIFT Nifty traded 0.5% lower at 23,180.50 as of 10:53 p.m. IST. On the Iran front, US President Donald Trump has vowed for a retaliation to Iran shooting down an American while it was patrolling the Strait of Hormuz overnight.
The global cues were mixed, with crude oil benchmark Brent trading at around $91 a barrel, about 3% lower, after slipping below $90 in intraday trade. The US stock market, however, plunged as the Nasdaq fell over 2% due to the tumbling chip stocks.
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"The absence of a definitive resolution to geopolitical tensions, coupled with concerns over inflation, commodity price volatility and monsoon trends, may keep investors cautious," said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services.
Nifty will find crucial support in the between 23,100 and 23,070 levels, while on the upside, 23,380–23,400 zone is expected to act as an important hurdle for the index, he added.
"A sustained move above the 23,400 level could trigger an extension of the ongoing pullback rally, potentially paving the way towards the 23,550 mark," said Sudeep Shah, Head pf Technical and Derivatives Research at SBI Securities.
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Bank Nifty
Bank Nifty's consistent outperformance of the benchmark reflects "a sustained strength in the banking space," according to Shah.
Going ahead, the index is likely to extend its upward trajectory in the near term, with immediate resistance placed around 55,700, followed by 56,200.
On the downside, the zone of 54,600–54,500 is expected to act as a crucial support, providing a cushion against any short-term pullbacks.
Market Recap
Indian equity benchmarks traded higher, with the Nifty 50 settling 119.10 points, or 0.52%, higher at 23,242.10 amid weekly F&O expiry. The Sensex also halted a two-day losing streak, rising 394.50 points, or 0.54%, to 73,918.76.
Broader markets outperformed the benchmarks. Nifty Midcap 150 ended more than 1.2% higher, snapping a two-day losing streak. L&T Technology Services and PI Industries were the top gainers on the index, rising more than 7% each.
Nifty Smallcap 250 closed nearly 1.5% higher. Data Patterns and Caplin Point Laboratories were the top gainers on the index. Data Patterns rose more than 10%, while Caplin Point Laboratories gained more than 6.8%.
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