Indian equity markets extended their declining streak on Tuesday as geopolitical tensions continued to impact global markets. According to reports from LiveMint, the Nifty 50 declined 0.28% to close at 22,716.2, while the BSE Sensex slipped 0.33% to 72,529.07. The Nifty 50's indicative closing level briefly plunged around 2.5% during the closing auction session, amid heightened volatility surrounding the monthly expiry of derivatives contracts. With Tuesday's decline, the benchmark indices have lost nearly 2% so far in the holiday-shortened week, extending the weakness seen over the past several weeks.
The current decline marks one of the longest losing streaks on record for Indian indices, with the Nifty 50 falling nearly 6% over the last seven weeks. As reported by LiveMint, the indices have fallen nearly 6% over the last seven weeks, marking one of their longest losing streaks on record. Global cues remained challenging, with Brent crude futures hovering around $105 a barrel, while the benchmark 10-year US Treasury yield surged above 5.27%, its highest level in 19 years. The absence of a Middle East peace deal kept crude oil prices and global bond yields elevated, fuelling concerns over further foreign investor outflows from domestic equities.
The market experienced unprecedented volatility during Tuesday's closing auction session (CAS), with Nifty's indicative price dropping 2% within just two seconds at 3:20:01. As reported by The Economic Times, the index fell from 22,684 to 22,249, representing a sharp decline of 435 points in just two seconds. However, the indicative price quickly recovered, wiping off all losses and closing above the pre-CAS level at 22,716. This dramatic volatility, typical of monthly expiry days, highlights the ongoing market confusion around CAS sessions that continues to spook investors. The Sensex comparatively saw a stable CAS session, closing 243 points lower at 72,529.
According to Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, the Nifty 50 has found support near the 22,500 level, where the highest put base is seen, and is currently respecting this zone. As reported by LiveMint, this has shifted the short-term trading range to 22,500–23,000, from the earlier 23,000–23,500 range following the break below 23,000. Thakkar noted that as long as Nifty 50 holds above 22,500, dips within the range could be used as buying opportunities, while rallies towards 23,000 could be used for selling until the index decisively moves above that level.
Jay Thakkar of ICICI Securities recommends specific stock picks for the F&O segment based on technical analysis. For buying opportunities, he recommends Alkem Laboratories futures in the range of ₹5,300-5,330 with targets of ₹5,450-5,550 and stop loss below ₹5,250. For selling opportunities, he suggests KFin Technologies futures on rise in the range of ₹835-₹845 with targets of ₹800-785 and stop loss above ₹865. Additionally, he recommends Amber Enterprises India futures on rise in the range of ₹6,730-₹6,750 with targets of ₹6,400-₹6,300 and stop loss above ₹6,900.
