The BSE Sensex opened at 76,953.63, down 140.44 points or 0.18 percent, while the NSE Nifty 50 slipped 34.05 points, or 0.14 percent, to 24,068.85 in early trade on Tuesday. The flat opening reflected a cautious trend across global markets, with domestic benchmarks trading marginally lower.
Market Analysts Cite Supportive Factors
Market analysts noted that despite the marginal decline at the opening, broader structural factors supporting the domestic market remained steady. Rajesh Palviya, Head of Research at Axis Direct, attributed the positive undercurrent to improved global sentiment following easing US-Iran tensions, softer crude oil prices, and continued resilience in domestic markets. However, he cautioned that weakness in US technology stocks capped optimism, with the Nasdaq underperforming amid profit-taking in large-cap technology names.
Global Markets and Commodities
The Nasdaq Composite declined by 351.33 points, or 1.32 percent, to settle at 26,166.60. The S&P 500 fell 0.37 percent, while Dow Jones futures were down 0.11 percent. Asian markets traded mixed on Tuesday morning, reflecting cautious global risk sentiment. The Nikkei 225 fell by 1,088.96 points, or 1.51 percent, while the KOSPI declined sharply by 6.21 percent. The Hang Seng Index slipped 1.20 percent, and the GIFT Nifty traded 0.14 percent lower at 24,067.00. In contrast, the Straits Times Index bucked the trend and gained 0.23 percent.
Brent crude remained below the USD 80 mark, trading at USD 77.67, down 0.29 percent. Gold prices declined 1.32 percent to USD 4,136.48, while WTI crude oil edged down 0.13 percent to USD 73.77. Palviya noted that Brent crude staying below USD 80 is a supportive factor for India's macroeconomic outlook due to lower inflationary pressures.
Technical Outlook for Nifty
Providing a technical outlook, Palviya highlighted key support and resistance levels. "Technically, the Nifty has reclaimed the crucial 24,100 level, and the near-term bias remains positive as long as the index sustains above the 24,000 support zone. The immediate hurdle is placed in the 24,150-24,200 range, and a decisive breakout above this zone could trigger fresh short covering and pave the way towards 24,400," Palviya added. He said that on the downside, any breach below 24,000 could weaken the current momentum and drag the index towards the 23,900-23,800 range. The overall strategy remains to "buy on dips while the Nifty holds above the 24,000 mark."
