India shares flat as Asia tech sell-off deepens on Iran tensions

Indian equities are poised for a muted start on Thursday, even as a broad sell-off swept through Asian markets. Gift Nifty signals were trading near 24,106, indicating a roughly 39-point premium over the previous close. This relative resilience contrasts sharply with heavy losses across the region.

Escalating US-Iran tensions and a surge in crude oil prices weighed heavily on regional exchanges. Japan’s Nikkei 225 plunged 3.03% and the Topix fell 1.17%, while South Korea’s Kospi tumbled 6.17% and the Kosdaq dropped 4.34%. The declines were concentrated in technology stocks amid growing concerns over stretched valuations.

The stability in Indian futures comes after a modestly positive session on Wednesday. The BSE Sensex gained 130 points, or 0.17%, to close at 77,185.43, while the NSE Nifty 50 added 26 points, or 0.11%, to settle at 24,078.50. Mid- and small-cap indices outperformed the benchmarks, advancing up to 0.5% despite the geopolitical noise.

Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, noted that the Nifty experienced high volatility on Wednesday. The index faces resistance near the 24,200 zone and must decisively breach 24,400 to trigger a fresh upward trajectory. “The index shall remain susceptible, with the bias maintained with a cautiously positive approach, having the important near-term support positioned at 23800 level which needs to be sustained,” Parekh said.

Bank Nifty closed above 57,700, with Parekh identifying 57,300 as a key support level based on the 200-period moving average. For intraday traders, she outlined a daily Nifty range of 23,900 to 24,300 and a Bank Nifty range of 57,000 to 58,500. Her specific stock recommendations for Thursday included CESC, with a buy-in at ₹162, a target of ₹168, and a stop loss at ₹158; Vedanta, with a buy-in at ₹260, a target of ₹250, and a stop loss at ₹266; and Crisil, with a buy-in at ₹4,190, a target of ₹4,260, and a stop loss at ₹4,170.