Indian equities set for weak open as US-Iran tensions drive crude higher
Indian benchmark indices are poised for a lower opening as escalating US-Iran geopolitical tensions and rising crude oil prices weigh on investor sentiment in major oil-importing economies.
Indian stock market benchmarks are expected to open lower on Tuesday amid mixed global cues and a discount in Gift Nifty futures. During the previous session, the Nifty 50 settled at 24,287.65, dropping 0.32 percent, while the Sensex fell 0.36 percent to 77,728.16. Global markets remain divergent, with Wall Street ending lower overnight and Asian indices showing mixed performance.
Crude oil prices have climbed concurrently, with Brent futures gaining to $91.14 a barrel and US West Texas Intermediate rising to $85.04. This surge follows stalled peace negotiations and the US ruling out an extension of a temporary ceasefire with Iran. Tehran has signaled a more aggressive military posture, heightening fears of global energy supply disruptions.
Ponmudi R, chief executive of Enrich Money, noted that renewed strength in crude prices and persistent geopolitical uncertainty are creating a cautious bias in Indian equity markets. He emphasized that energy-related risks and inflationary pressures remain at the forefront for oil-importing nations like India as the conflict persists.
Technical Levels
Ajit Mishra, senior vice president of research at Religare Broking, pointed out that the Nifty 50 is nearing its medium-term moving-average support, with the 100 DEMA situated around 24,200. Weakness in key sectors such as banking and IT is weighing on the index. A decisive break below this threshold could trigger fresh selling pressure toward 24,000, while the 24,400 to 24,600 zone remains a critical resistance hurdle.
The banking index is projected to remain range-bound with a stable undertone, provided it holds above the 57,100 to 57,200 support region, according to Ponmudi R. A sustained breakout above the 58,000 resistance band could strengthen buying momentum toward 58,500. Conversely, a drop below 57,000 would weaken the near-term bias and invite fresh selling.
Amid the broader volatility, market analysts from firms including Choice Broking and Anand Rathi have identified several equities for intraday trading. Recommended names for potential buys include ICICI Bank, TVS Motor Company, Thermax, and Siemens Energy India, alongside select financial and pharmaceutical stocks like Radico Khaitan and Ajanta Pharma.
