Rising crude oil and global bond yields pressure Indian equities
Renewed strength in energy prices and surging global borrowing costs are dampening investor sentiment, setting the stage for a volatile trading session across domestic benchmark indices.
GIFT Nifty futures indicate a flat start for domestic equities, trading near 24,200 against the spot Nifty’s previous close of 24,154. However, underlying macroeconomic headwinds suggest the broader market will face sustained pressure throughout the trading session.
The combination of higher energy costs and elevated global borrowing expenses directly impacts corporate profit margins and domestic consumption. This dynamic is prompting institutional and retail traders to reassess their risk positions across the benchmark indices.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, anticipates significant intraday volatility as futures bounced from early lows to hit new highs. She notes that the 50-stock index has experienced steady profit-booking over the past fortnight and is now sliding below its 50-day exponential moving average at 24,190.
This technical breach weakens the overall market bias and suggests further downside in the coming sessions. “The 24,000 zone would be the near-term support for the index, whereas the 23,800 level would be positioned as the major support, which needs to be sustained to maintain the overall trend intact,” Parekh stated. She added that the 200-period moving average at the 24,700 zone would continue to act as the resistance hurdle on the upside.
The financial sector benchmark is also showing distinct signs of stagnation. Bank Nifty remains tightly gripped near its 200-period moving average of 57,450, with sentiment softening as it tests the 50-day exponential moving average at 57,200.
Sustaining this specific level is crucial for preserving the current market structure and overall bias. “The Bank Nifty index would have the tough resistance hurdle at the 58,600 zone, whereas the important and major support would be positioned near the 100-period MA at the 56,000 level, which needs to be sustained to maintain the trend intact,” Parekh explained.
Amid the broader market caution, Parekh identified specific opportunities for intraday traders looking to navigate the volatility. She recommended buying shares of Data Patterns at ₹4,737 with a target of ₹4,950 and a stop loss of ₹4,660.
L&T Finance was also flagged for a long position, with a buy price of ₹325, a target of ₹340, and a stop loss of ₹318. Additionally, Piramal Pharma was recommended for purchase at ₹210.50, targeting ₹223 with a stop loss set at ₹205.
