Indian equity markets declined on Tuesday as fears of an escalation in the Middle East intensified ahead of a deadline set by US President Donald Trump for a deal with Iran, unsettling global sentiment and pushing crude oil prices higher.
Trump has warned that without a deal, “every bridge in Iran will be decimated” by 8 pm EDT Tuesday (5:30 am IST) and “every power plant in Iran will be out of business, burning, exploding, and never to be used again.”
Tehran, however, has defiantly refused to accept a ceasefire deal or reopen the Strait of Hormuz.
The BSE Sensex fell 735.65 points, or 0.99 per cent, to 73,371.20, while the Nifty declined 226.95 points, or 0.99 per cent, to 22,741.30 in early trade.
“One more deadline with dire threats looms for the markets,” said banking and market expert Ajay Bagga, adding that continued foreign institutional investor (FII) selling is further dampening investor sentiment.
“Technically, after a muted open, the market found support near 22,550/72,700 and reversed sharply. On daily charts, it has formed a bullish candle, and on intraday charts, it is holding a higher bottom formation, which is largely positive. We are of the view that the market has completed one leg of the pullback move; hence, buying on intraday corrections and selling on rallies would be the ideal strategy for day traders,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
“We consider 22,700/73,500 and 22,500/72,700 as key support zones for traders, while 23,200/74,500 and 23,300/75,000 could act as crucial resistance levels. However, if the index falls below 22,500/72,700, the uptrend may become vulnerable. In such a scenario, traders may prefer to exit their long positions. The strategy should be to reduce weak long positions between 23,150–23,250/74,500–74,800 levels,” he added.
Among Asian markets, Japan’s Nikkei traded flat, while South Korean stocks gained 0.2 per cent.
Brent crude futures rose $1.74, or 1.6 per cent, to $111.51 a barrel by 0530 GMT, while US West Texas Intermediate crude futures climbed $3.45, or 3.1 per cent, to $115.86.
(With inputs from Reuters, ANI)
