Indian stock indices opened lower on Wednesday as renewed tensions between the US and Iran dampened global risk sentiment and pushed crude oil prices higher. According to reports from LiveMint, the Nifty 50 declined 0.57% to 24,259.55, while the BSE Sensex slipped 0.47% to 77,816.45 in early trade. Selling pressure was broad-based, with all 16 major sectoral indices trading in the red. The broader markets also remained weak, with the Nifty Midcap and Smallcap indices falling around 0.5% each.
As reported by LiveMint, Brent crude climbed 2.6% to $76.1 per barrel, extending the previous session's gains after the US launched military strikes against Iran. The surge in crude oil prices is seen as a key risk for India, as higher oil costs can widen the country's import bill, stoke inflationary pressures, weigh on economic growth, and compress corporate profit margins. According to Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, the PCR had risen to 1.46 levels, which was quite overbought in the short term, while the India VIX fell to 11.50 levels, which is at the lower extreme, signaling that the uptrend may take a pause.
According to ICICI Securities analysis reported by LiveMint, the Nifty 50 failed to close above the 24,500 level during the weekly expiry, which is a short-term concern. The 24,000 level is a very critical support range as it has the highest put base, and until that is broken, the short-term trend will not reverse completely. The short-term range is 24,000-24,500 levels, with the BankNifty facing resistance near 58,700 levels and the Nifty Midcap Select facing hurdle near 14,700 levels. As reported by LiveMint, the BankNifty has been facing resistance near 58,700 levels for 1 week now, indicating that all three indices have reached the upper end of their respective ranges.
Jay Thakkar of ICICI Securities recommends Infosys Futures in the range of ₹1,060-1,075 with stop loss below ₹1,030 and targets of ₹1,140-1,180. According to the analysis reported by LiveMint, Infosys price action indicates a short-term base is in place, with the stock showing resilience and open interest declining, suggesting short covering. The stock has managed to close above the ₹1,050 level, which is its maximum pain level, acting as short-term support. Power Finance Corporation (PFC) Futures are recommended for selling in the range of ₹413-416 with stop loss above ₹422 and targets of ₹400 and ₹390. As reported by LiveMint, PFC has not been able to bounce back sharply despite decreased open interest, with the options data showing mixed signals.
According to ICICI Securities analysis reported by LiveMint, State Bank of India (SBI) Futures are recommended for selling in the range of ₹1,035-1,045 with stop loss above ₹1,058 and targets of ₹1,000-985. The analysis indicates that SBI has faced resistance near the mean of the weekly Bollinger bands, with both the stock and the BankNifty facing hurdles near the upper end of their ranges. The options data shows significant call additions at the ₹1,050 level, indicating that until it closes above that level, a short-term reversal may be seen. SBI is trading below its maximum pain level of ₹1,050, which again indicates that ₹1,050 is an immediate hurdle.
