Indian stock markets started Tuesday’s session on a cautious note after a sharp sell-off in the previous trading session. Higher crude oil prices, rising US bond yields and weak global market signals continued to weigh on investor sentiment.
The Nifty 50 opened at 22,732.45, compared with its previous close of 22,780.25. It was trading 0.28% lower at 22,715.55. The Sensex opened at 72,633.68 and was down 0.31% at 72,549.02.
The weakness followed Monday’s broad market decline, when the Nifty fell 1.56% to 22,780.25 and the Sensex dropped 1,124.02 points, or 1.52%, to close at 72,771.72.
Global Markets Remain Under Pressure
Global equities also faced pressure as higher oil prices and rising bond yields renewed concerns about inflation and interest rates. On Monday, the S&P 500 declined 0.77%, while the Nasdaq Composite and Dow Jones Industrial Average fell 0.92% and 0.67%, respectively.
The US 10-year Treasury yield moved towards 5.23-5.24%, adding another pressure point for equity markets. Asian markets were also broadly weak, with Japan’s Nikkei, South Korea’s KOSPI and China’s Shanghai Composite ending lower, while Hong Kong’s Hang Seng moved in the opposite direction.
European markets were relatively subdued, with the pan-European STOXX 600 ending largely flat. Gains in British housebuilders were offset by concerns surrounding higher oil prices and elevated bond yields.
“The Indian market has opened on a cautious note today. The recovery is limited because Brent crude has climbed back towards $106–107, while the US 10-year yield is around 5.24%. Asian markets are also trading lower, keeping the overall risk appetite subdued,” market analyst Vipin Dixena said.
Nifty Support and Resistance Levels
Dixena said crude oil prices and the rupee remain important factors for the market. The rupee had closed around ₹95.98 against the US dollar on Monday and remained under pressure amid higher oil prices and US yields.
According to Dixena, the immediate support zone for the Nifty is at 22,750-22,700. A move back above 22,900-23,000 could lead to a relief bounce, while a decisive break below 22,700 could take the index towards 22,500. He identified 23,000-23,100 as an important supply zone.
Hemang Gor, Senior Research Analyst – Derivatives and Technical Research at Axis Direct, described the market bias as neutral with a cautious undertone. He placed immediate support for the Nifty at 22,750-22,700 and resistance at 22,950-23,000, followed by 23,120.
Pharma and IT Gain, Auto and Media Decline
Sector-wise, Nifty Pharma was up 0.39%, while Nifty IT gained 0.06%. On the other hand, Nifty Media declined 0.77%, Nifty Auto fell 0.75% and Nifty Metal dropped 0.57%.
Nifty FMCG and Financial Services also traded lower, declining 0.43% and 0.39%, respectively.
Among individual Nifty stocks, Dr Reddy’s Laboratories gained 1.97%, followed by Cipla at 1.02% and Sun Pharma at 0.76%.
On the losing side, Tata Motors Passenger Vehicles declined 2.40%, HDFC Life fell 1.99% and Bajaj Finance dropped 1.45%.
Crude Oil Adds to Market Concerns
Brent crude was trading around $107 a barrel, up 1.63%, adding pressure on market sentiment as well as the rupee. Oil prices had risen sharply on Monday amid renewed uncertainty surrounding the Strait of Hormuz before giving up part of their gains later in the session.
The combination of elevated crude prices, higher US Treasury yields and weak global equities is keeping investors cautious. Market participants are closely watching oil prices, currency movements and expectations surrounding global interest rates as trading progresses.
Disclaimer
This article is for informational purposes only and is based on market data and analyst comments available at the time of reporting. Stock prices and market conditions can change rapidly during trading hours. The information should not be considered investment advice. Readers should conduct their own research or consult a qualified financial adviser before making investment decisions.