- The NIFTY50 ended Tuesday’s session in the red, shedding 50 points after recovering from its intraday lows.
- GIFT NIFTY futures were trading more than 50 points lower at 7:30 am on Wednesday, indicating a negative start for the NIFTY50.
- Indian equity markets are likely to make a flat-to-negative start on Wednesday weighed down by elevated crude oil prices amid escalating U.S.-Iran tensions.
- On the hourly charts, the index managed to defend the 50 EMA level, but closed below the 20 EMA, suggesting a lack of buying strength in the closing hours.
- Foreign institutional investors (FII) bought shares worth ₹1,650 crore on Tuesday while domestic institutional investors sold stocks worth ₹657 crore, as per NSE data.
- US stock markets closed in the green across the board, led by a rally in chip stocks, with the NASDAQ 100 soaring over 550 points to close 1.9% higher.
- Brent crude oil prices remained elevated near $92 per barrel on Wednesday morning as supply risks intensified across major routes in and around the Middle East.
- The index closed below the crucial support zone of 24,200, indicating a lack of buying strength at higher levels.
- The initial buildup for the upcoming weekly expiry indicates a lack of clarity on the index's direction, with the 24,200 calls and puts holding the highest open interest.
Indian equity markets are poised for a flat-to-negative start on Wednesday, as the NIFTY50 index faces challenges from rising crude oil prices and geopolitical tensions, particularly the escalating U.S.-Iran conflict.13
The NIFTY50 closed down 50 points at 24,188 on Tuesday, below the crucial 20 EMA level, indicating a lack of buying strength.4
GIFT NIFTY futures were trading over 50 points lower early Wednesday, suggesting a negative opening.2
Despite foreign institutional investors (FIIs) purchasing ₹1,650 crore worth of shares on Tuesday, the index's performance reflects ongoing market uncertainty.5
Brent crude oil prices remain elevated near $92 per barrel, contributing to the risk-off sentiment among investors.
The NIFTY50's recent performance shows a doji candlestick pattern on daily charts, indicating indecision in market direction.
The upcoming weekly expiry on July 28 is expected to see a range-bound trade, with the 24,200 calls and puts holding the highest open interest.89
Overall, while Asian markets are trading higher following a positive session on Wall Street, Indian markets are likely to remain under pressure due to external factors.
“Brent crude surged 1.84% to $92.68 a barrel after the US military completed 11th night of strikes on Iran, while FIIs turned net buyers with purchases of ₹1,650 crore on Tuesday. On the technical front, the NIFTY50 formed a doji candlestick and closed below the crucial support of 24,200, where the highest open interest lies for both calls and puts, suggesting a range-bound trade on Wednesday.”
