The domestic benchmark indices showed mixed performance in early Wednesday trading as geopolitical tensions weighed on investor sentiment. According to reports from LiveMint, at 9:15 IST, the Nifty 50 was down 0.04% at 23,233.95, while the BSE Sensex edged up 0.09% to 73,988.27. The muted opening followed Tuesday's stronger session when both indices gained about 0.5%, supported by the Reserve Bank of India's foreign exchange swap facility for banks' overseas foreign-currency borrowings and temporary easing of geopolitical tensions. However, sentiment turned cautious after the US launched strikes against Iran, following President Donald Trump's claim that Tehran had shot down a US Apache helicopter in the Strait of Hormuz. The renewed conflict weighed on regional markets, with broader Asian equities declining 1.8%, while Brent crude oil rose about 1%, rebounding from a seven-week low. Higher crude oil prices remain a key concern for India, the world's third-largest oil importer, as they can slow economic growth, pressure corporate profit margins, widen the trade deficit, and add to inflationary pressures.
According to LiveMint analysis by Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, the Nifty 50 has closed above 23,200, indicating higher upside probability. The index has provided strong support near the 61.8% retracement levels and its previous swing low. The BankNifty has provided a strong breakout from the falling trendline, with decreased open interest indicating short covering. The India VIX has fallen below 16, suggesting decreasing fear and higher chance of short covering. The net short position by FIIs has increased to 2.75 lakh contracts, while the cumulative put base for the June series is at 23,000 strike, acting as short-term support. The Nifty 50 has a short-term hurdle around 23,550, which is acting as strong resistance; above that, there is a higher chance of a breakout, which could take it to 24,000 levels.
As reported by LiveMint, Jay Thakkar recommends three stocks for near-term trading in the F&O segment. Bajaj Finserv Futures should be bought in the range of ₹1,690-1,705 with a stop loss below ₹1,650 and targets of ₹1,780-1,820. The stock has found support near its previous swing low with short covering bringing down overall leverage. Union Bank Futures should be purchased in the range of ₹170-172 with a stop loss below ₹166 and targets of ₹177-182. The stock has formed a rounding bottom pattern with accumulated shorts and closed above its maximum pain level of ₹167.50. Divis Labs Futures should be bought in the range of ₹6,790-6,810 with a stop loss below ₹6,740 and targets of ₹6,875-6,920. The stock is forming higher tops and bottoms with increased open interest indicating long buildup. The stock has been trading above its maximum pain level of ₹6,700, which acts as strong support, with aggressive put additions at ₹6,500 and ₹6,600 strikes indicating positive sentiment.
Union Bank of India share price has remained in a consolidation phase since last one month, declining over 9% in three months despite gaining 14% in six months and 10% in one year. According to LiveMint analysis by multiple experts, the stock witnessed strong traction on Tuesday in line with gains across other PSU banking stocks, but declined 1.35% to ₹168.10 on Wednesday amid heavy selling momentum. Ruchit Jain from Motilal Oswal notes that the immediate resistance for Union Bank is seen around ₹172 level, with a breakout above this potentially leading to short-term upmove. Rajesh Bhosale from Angel One highlights that the stock is hovering near the key resistance level of ₹170, which coincides with the recent high and 89-day exponential moving average, with sustained upside momentum requiring a decisive move above ₹170. SBI Securities' Sudeep Shah notes that the stock has been consolidating within the ₹160-₹172 range since May 25, with the 200-day EMA repeatedly acting as strong support and the ₹161-₹163 zone expected to provide strong support on declines.
