Indian equity markets are seeing a bearish undertone in response to the deepening military conflict across the Middle East, which pushed crude oil prices markedly higher. Analysts say a decisive break below 24,600 could trigger another leg toward 24,400. Conversely, a sustained move above 25,200 on a closing basis is required to neutralize the immediate downside bias and signal stabilization.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a gap-down start
GIFT Nifty on the NSE IX traded lower by 557.50 points, or 2.23 per cent, at 24,435, from Monday’s close signaling that Dalal Street was headed for a gap-down start on Wednesday.

• Tech View: Key support is placed at 24,600; a decisive break below this level could extend the decline towards 24,200. On the upside, immediate resistance is seen at 25,000 and a break above the same will attract a short covering towards 25200 levels.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 25% to settle at 17.13 levels.

US stocks end lower
U.S. stocks fell on Tuesday as investors worried about how long the Middle East conflict may persist, but indexes ended well off the day’s lows. Selling was broad-based, with materials down the most among the major S&P 500 sectors, and the Cboe Volatility index rose.

• Dow down 0.8%,
• S&P 500 dips 0.9%,
• Nasdaq falls 1%

Asian shares down
Asian stocks extended their slide into a third day and oil edged up as the war in Iran threatens to unleash a wave of global inflation and traders pare bets for interest-rate cuts by the Federal Reserve.

• S&P 500 futures fell 0.1% as of 9:13 a.m. Tokyo time
• Hang Seng futures fell 0.8%
• Japan’s Topix fell 2.7%
• Australia’s S&P/ASX 200 fell 1.7%
• Euro Stoxx 50 futures fell 3.7%

Dollar gains
The dollar rallied to a three-month high in early trading in Asia on Wednesday, with investors retreating from the euro as the growing conflict in the Middle East sparked fears of a sustained rise in energy prices.

Gold climbs
Gold prices rose 1% on Wednesday, rebounding from a more than one-week low hit in the previous session, as escalating U.S.-Israeli air strikes against Iran heightened geopolitical uncertainty and supported safe-haven demand. Stocks in F&O ban today
Samman Capital

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

FII/DII action
Foreign portfolio investors net sold shares worth Rs 3,295 crore on Tuesday. DIIs, meanwhile, were net buyers at Rs 8,594 crore.

Rupee
The rupee saw a steep loss of 41 paise to settle at 91.49 against the US dollar on Monday after US and Israeli attacks on Iran intensified worldwide risk aversion, setting crude oil prices on fire and demand for the American currency soaring.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)