Both Indian indices - Sensex and Nifty 50 - are expected to open on a subdued note on mixed cues from global peers as investors watch out for developments in Israel-Iran war.
Asian markets fell on Wednesday, meanwhile US stock market inched lower as traders brace for the Federal Reserve's rate decision due Wednesday afternoon stateside.
On Tuesday, the Indian stock market ended in red on profit-booking in select heavyweights, including HDFC Bank, Reliance Industries and Bajaj Finance amid weak global cues.
The Sensex finished the session down by 213 points, or 0.26%, closing at 81,583.30, while the Nifty 50 slipped 93 points, or 0.37%, to settle at 24,853.40.
" Markets remained lackluster and ended nearly half a percent lower, continuing the ongoing consolidation phase. After an initial decline, the Nifty index traded within a narrow range and eventually settled at the 24,853.40 level. Barring the IT sector, all key indices edged lower, with pharma, metal, and realty among the top losers. Following the recent rebound, the broader indices also witnessed profit-taking and declined by over half a percent each.
In the absence of any major domestic events, global cues-such as updates on ongoing geopolitical tensions and the outcome of the FOMC meeting-will guide the market trend and are likely to keep volatility elevated. Amid this backdrop, participants should maintain a stock-specific trading approach while managing position sizes prudently," said Ajit Mishra - SVP, Research, Religare Broking Ltd.
Levels for Nifty50:
Resistance based on pivot points: 24,947, 24,987, and 25,051
Support based on pivot points: 24,819, 24,779, and 24,715
The Ni,,fty 50 formed a bearish candlestick resembling a Bearish Belt Hold pattern (though not a classical one) on the daily charts, signaling some weakness. The index managed to defend the 20-day EMA and the midline of the Bollinger Bands on a closing basis, albeit with low volume. Meanwhile, the MACD remained in a negative crossover with a weakening histogram, and the RSI, at 53.26, tilted downward with a negative crossover.
Levels For The NiftyBank (55,714)
Resistance based on pivot points: 55,970, 56,070, and 56,232
Support based on pivot points: 55,647, 55,547, and 55,385
Resistance based on Fibonacci retracement: 56,099, 56,810
Support based on Fibonacci retracement: 55,266, 54,845
The NiftyBank also formed a bearish candlestick on low volume, falling 0.4 percent. However, it continued its formation of higher tops and bottoms for another session. The index hovered around the midline of the Bollinger Bands. The MACD showed further weakness in the histogram, while the RSI, at 52.55, remained in a negative crossover
Here are key global market cues:
Asian markets
Asia-Pacific stock markets declined on Wednesday as escalating tensions between Israel and Iran dampened investor confidence.
Japan's Nikkei 225 index slipped 0.15%, while the broader Topix fell by 0.18%. In South Korea, the Kospi dropped 0.44% and the Kosdaq, focused on smaller-cap stocks, edged down 0.15%. Futures for Hong Kong's Hang Seng index last traded at 23,813, suggesting a softer start ahead compared to the previous closing level of 23,980.30.
Gift Nifty today
Gift Nifty was trading around 24,834 level, a discount of nearly 29 points from the Nifty futures' previous close, indicating a weak start for the Indian stock market indices.
Wall Street
U.S. stock futures edged slightly downward as investors remained cautious ahead of the Federal Reserve's interest rate decision, expected Wednesday afternoon in the U.S.
On Tuesday, all three major indexes on Wall Street closed in negative territory. The Dow Jones Industrial Average dropped 299.29 points, or 0.70%, finishing at 42,215.80. The S&P 500 declined by 0.84% to close at 5,982.72, while the Nasdaq Composite slid 0.91% to settle at 19,521.09.
Israel-Iran war
Overnight, the conflict between Israel and Iran escalated significantly, prompting the United States to increase its military presence in the region. In response to the growing tensions, US President Donald Trump convened a meeting with his national security team, although the details of any potential strategy remain undisclosed. The situation has intensified diplomatic concerns, with the U.S. aiming to maintain a balance between deterrence and the risk of broader regional instability.
Crude Oil Price
Oil prices edged higher in early Wednesday trading, building on a more than 4% gain from the previous session amid concerns that the ongoing Iran-Israel conflict could impact supply chains.
As of 0029 GMT, Brent crude futures had climbed 19 cents (0.25%) to reach $76.64 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 23 cents (0.31%) to $75.07 per barrel.
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