The Indian equity markets faced losses in early trading on Friday, influenced by global weakness and crude oil price fluctuations amidst tensions in the Middle East. As of 9:28 am, Sensex dropped by 365 points, or 0.46%, reaching 79,650, while Nifty fell by 103 points, or 0.42%, to 24,662. Notably, the Nifty Midcap 100 rose by 0.30%, and the Nifty Smallcap 100 gained 0.45%, showing a divergence from the benchmark indices.
All sectoral indices, except IT, pharma, and oil and gas, were in the red, with Nifty private bank and auto sectors being the top losers, down by 1.18% and 0.65%, respectively. Market participants expressed concerns over persistent geopolitical tensions in the Middle East, which could lead to global inflationary pressures and potential tightening of monetary policies.
Analysts highlighted that the immediate resistance zone for Nifty is at 24,850, with support levels seen in the range of 24,550–24,500. They also noted an improving momentum indicated by the RSI at 37.55, suggesting that fresh long positions should be considered only after a clear and sustained breakout above the 25,000 level.
Resistance levels for Bank Nifty were identified in the 59,300–59,400 range, while the 58,700–58,800 zone was noted as a crucial support area by market participants. Meanwhile, oil prices crossed the $80 per barrel mark, with Brent futures trading slightly lower at $84.64 on Friday.
In the Asian markets, China’s Shanghai index and Shenzhen index saw gains, while Japan’s Nikkei and South Korea’s Kospi experienced slight declines. The US markets closed in the red, with Nasdaq, S&P 500, and Dow Jones registering losses. On March 5, foreign institutional investors (FIIs) net sold equities worth Rs 3,752 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 5,153 crore.
