However, the sentiment flipped post market after President Donald Trump said he would order the military to postpone strikes against Iranian power plants and energy infrastructure following “productive conversations” with Tehran. The benchmark US WTI fell 12% and hovered around $86 a barrel while major indices on Wall Street traded in the green.
Commenting on the current trends Ajit Mishra, Senior Vice President – Research at Religare Broking said the Monday sell-off was a continuation of the prevailing downtrend amid weak global cues and escalating geopolitical tensions. Investor sentiment remained extremely fragile amid escalating geopolitical tensions in West Asia, which have once again pushed crude oil prices sharply higher, he said.
On the index front, the Nifty is showing little respect for support levels despite being in an oversold zone, Mishra said, seeing the next major support to watch lies in the 21,900–22,000 zone, which coincides with the 200 WEMA, followed by 21,700 (the April 2025 low).
“In case of a recovery, the 22,800–23,000 zone is likely to act as a strong resistance band. Given the prevailing uncertainty, elevated volatility and continued global headwinds, participants are advised to prefer options spreads over naked positions in the index, while maintaining a selective, stock-specific trading approach,” he added.
Here’s breaking down of the pre-market actions:
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a gap-up start
GIFT Nifty on the NSE IX traded higher by 412 points, or 1.83 per cent, at 22,877, signaling that Dalal Street was headed for a gap-up start on Tuesday.
Tech View: Decoding the Nifty chart, Bajaj Broking said the index has formed a sizable bearish candle with a lower high & lower low and a bearish gap above its head (23,067-22,851), signaling continuation of the downward bias for the fifth consecutive week. Index breached the support area of 22,700 and dragged lower and follow-through weakness will open further downside towards 22,200 and 21,800 levels in the coming sessions, this brokerage said, adding that the daily and weekly oscillators have approached oversold territory.
India VIX: India VIX, which is a measure of the fear in the markets, rose 17.17% to settle at 26.73 levels.
US stocks end higher
The three main U.S. stock indexes finished Monday’s session up more than 1% as oil prices fell after President Donald Trump said he had ordered the military to postpone strikes against Iranian power plants following “productive conversations” with Tehran.
Asian shares rally
Asian stocks rallied, oil prices nursed losses and the dollar wobbled on Tuesday after U.S. President Donald Trump postponed the bombing of Iran’s power grid, allaying fear of a deeper energy shock.
- S&P 500 futures fell 0.3% as of 9:47 a.m. Tokyo time
- Hang Seng futures rose 2.8%
- Nikkei 225 futures (OSE) rose 1.9%
- Japan’s Topix rose 2%
- Australia’s S&P/ASX 200 rose 0.5%
- Euro Stoxx 50 futures fell 0.2%
Oil rises
Oil prices rose in early trade on Tuesday on supply fears, as Iran denied it had held talks with the United States to end the war in the Gulf, contradicting President Donald Trump, who said a deal could be reached soon.
Gold edges higher
Gold clawed back some losses after the postponement of US strikes against Iran’s power infrastructure offered some respite from the precious metal’s dramatic wartime retreat.
FII/DII action
Foreign institutional investors (FIIs) were net sellers of Indian equities as they bought shares worth Rs 10,414.23 crore on Monday while the domestic institutional investors (DIIs) shares purchased shares worth Rs 12,033.97 crore.
Stocks in Ban
Steel Authority of India (SAIL) and Sammaan Capital are under F&O trade ban today.
Rupee
The Indian rupee fell to a record low on Monday, pressured by a sustained rise in oil prices and mounting worries that the Middle East conflict could prolong energy-supply disruptions and strain the outlook for Asia’s third-largest economy. The rupee fell to 93.94 against the U.S. dollar, eclipsing its previous low of 93.7350 hit on Friday.
(Inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)