Domestic benchmark indices started the week on a downward trend, with Sensex dropping over 1,000 points and Nifty slipping 267 points. All sectoral indices showed selling pressure, with PSU bank and chemical stocks leading the losses. Even defensive sectors like FMCG, IT, and Pharma saw declines of up to 2 percent.
The market has witnessed a nearly 10 percent decline since the beginning of the US-Israel-Iran conflict on February 28. The recent escalation involved Iran attacking an Israeli chemical facility, followed by Israeli retaliation on infrastructure in Tehran, heightening geopolitical concerns. Analysts noted sustained weakness and negative sentiment in the market, advising a disciplined and selective approach for investors.
Immediate support for Nifty is expected in the 22,450–22,500 range, with resistance at 22,950–23,000. Analysts suggest considering fresh long positions only after Nifty breaks and sustains the 24,000 mark, indicating improving sentiment. In the current geopolitical climate, avoiding leveraged overnight positions is recommended.
Brent crude futures surged over 3.6 percent to $116.70 per barrel, nearing their 52-week high, while US WTI futures traded at $103.38, up 3.75 percent. Global equities, including the S&P 500 and Asian markets like Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s Kospi, closed lower.
