The Indian markets have rebounded from early lows in the intraday trading session. The Sensex is currently trading at 81,748.84, down 0.80%, while the Nifty is below the 25,000 mark, down 0.77%. The top losers at this hour include Shriram Finance and Infosys, both down 2%, followed by Hero MotoCorp, JSW Steel, TCS, and M&M.
Indian equity benchmarks began the week on a weak note, tracking negative cues from global markets. In early trade on Monday, the Sensex dropped by 518 points or 0.63% to 81,889.40, while the Nifty slipped 143.30 points or 0.57% to 24,969.10. The Nifty Bank index also started in the red, opening at 55,927.15, down by 0.58%.
Heightened geopolitical tensions in the Middle East and cautious sentiment among global investors weighed on the market mood in early trade.
“Even though the US bombing of Iran’s three nuclear facilities has worsened the crisis in West Asia, the impact on the market is likely to be limited. The uncertain factor now is the timing and nature of the Iranian response. If Iran targets and damage the US defence facilities in the region or hurts US military personnel seriously, the US response can be huge and this might further worsen the crisis. But the market assessment is that there are limits to what Iran can do against US and Israel. That’s why the early market responses – crude prices, US futures, absence of panic in Asian markets – have been muted,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Key factors to watch out today
Top gainers in early trade
Among the Sensex pack, the top performers in the opening session include Bharat Electronics, Bharti Airtel.
Key laggards in early trade
On the flip side, pressure was visible on select heavyweight counters. Stocks such as Infosys, HCL Tech, Hindustan Unilever and Eternal were among the top laggards, dragging the indices lower.
Asian market
Major Asia-Pacific indices slipped in early Monday trade following rising geopolitical concerns. Japan’s Nikkei 225 fell 0.56%, while the Topix index was down 0.49%. South Korea’s Kospi dropped 1%, and the Kosdaq plunged 1.78%.
Key support and resistance levels in focus
“Technically, on the weekly chart, the market has formed a bullish candle, and on the daily chart, it has formed a higher bottom. Additionally, it is currently trading above the 20-day Simple Moving Average (SMA), which is broadly positive. We believe, last Friday, the market not only crossed the 24,900/81800 resistance level, but also managed to close above it,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
“For Bank Nifty, a higher lower support is placed at 55,500. Above this, it can bounce back towards 57000-57350. Conversely, if it slips below 56,500, it can decline towards the 50-day SMA or 55,000 and 54,800 levels,” he added.