Business News | Nifty Slips 0.16%, Sensex Gains 132 Points as Investors Weigh Volatile Crude

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Key takeaways

The Nifty 50 declined 0.16 per cent while the BSE Sensex gained 131.57 points.
US Treasury yields crossing 5.6 per cent weighed on global equity valuations.
Analysts highlight support zones for the Nifty as investors watch crude prices.

Indian markets react to volatile crude

The Nifty 50 opened lower on Wednesday while the Sensex gained 0.18 per cent, as investors remained cautious amid volatile crude prices and concerns over global yields, with analysts expecting the market's near-term direction to depend on oil prices and key technical levels.

At the time of filing this report, Nifty 50 was down 36.70 points, or 0.16 per cent, at 22,679.50, after opening at 22,665.00, while the BSE Sensex gained 131.57 points, or 0.18 per cent, to 72,660.64, after opening at 72,441.15. The Nifty had closed at 22,716.20 on Tuesday, declining 64.05 points for its second consecutive session.

US equities ended lower for a second straight session as rising Treasury yields weighed on valuations. The Dow fell 0.26 per cent, the S&P 500 0.16 per cent and the Nasdaq 0.09 per cent. The 30-year Treasury yield crossed 5.6 per cent, its highest since 2002.

“The bond sell-off has raised borrowing costs across the economy and pressured richly valued equities and crypto,” said Devarsh Vakil, HSL Prime Research.

Analyst perspectives on market levels

Hemang Gor, Senior Research Analyst – Derivatives & Technical Research, Axis Direct, said that the market's undertone remained subdued while the Nifty traded below 22,800.

“Bias is cautiously positive, but the undertone stays subdued while the Nifty trades below 22,800,” Gor said.

He added the index could find support around 22,500, with a break below that level potentially taking it towards 22,200. On the upside, 22,900 would be the first hurdle, followed by 23,100.

Gor said progress in US-Iran talks and easing crude prices and bond yields could help the index stabilise, while another spike in either could keep selling pressure intact.

Brent crude was trading below USD 100 at USD 96.59, up 0.44 per cent.

Sector performance and technical outlook

Among sectoral indices, Nifty Media gained 1.37 per cent, followed by Oil & Gas at 1.15 per cent and PSU Bank at 1.11 per cent. IT rose 0.85 per cent, while Metal fell 0.54 per cent and Financial Services ex-Bank declined 0.30 per cent.

Among Nifty 50 stocks, TCS gained 1.78 per cent, followed by Tech Mahindra and HCLTech, while BSE, Max Healthcare and Adani Ports were among the major losers.

Market Analyst Vipin Dixena said the Indian market was attempting a modest recovery, helped by a somewhat supportive global backdrop and moderation in crude from recent highs. However, he flagged continued foreign institutional investor selling as the bigger concern.

“The bigger concern for me remains FII selling,” Dixena said.

He identified 22,600-22,570 as a crucial support zone for the Nifty. If the index holds this range, the current recovery could extend towards 22,850-23,000, while a decisive break below 22,570 could open the way towards 22,380 and eventually 22,200.

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