Indian markets are closed today amid a public holiday. Traders should expect a volatile gap-down open when markets resume on March 4. GIFT Nifty signals will likely reflect overnight crude swings and further deterioration in geopolitical sentiment.
The US-Israel military campaign against Iran has widened considerably since Friday's close. Retaliatory drone and missile strikes from Tehran are rattling Gulf nations hosting US military bases.
The Strait of Hormuz, a key passage for nearly 40% of India's crude imports, stays under threat and the closure risk has pushed Brent crude toward $80 per barrel.
Nifty 50 declined 312.95 points or 1.24% to 24,865.70 as investors sold off major financial, automotive and infrastructure stocks.
The index opened at 24,659.25, reached a low of 24,603.50, and a high of 24,989.35, before closing at 24,865.70.
The index declined sharply amid global risk-off sentiment triggered by escalating Middle East tensions, rising crude oil prices, rupee weakness, and FII selling.
Technically RSI slipped sharply below the 40 mark. It indicates rising bearish momentum. Near-term support levels are at 24,564-24,358, and resistance levels are at 25,227-25,433.
Sensex fell by 961.42 points or 1.17% to settle at 81,287.19 as selling pressure increased across major index stocks. Losses were driven by Sun Pharma (-2.61%), Bharti Airtel (-2.53%), and Indigo (-2.32%).
Technically the index has convincingly broken below 81,000 and is now testing the 80,000 psychological floor.
If 80,000 fails to hold on Wednesday's open the next support levels are seen at 79,500 and 79,000. On the upside 80,500-81,000 now acts as the resistance.
A bounce is possible given oversold conditions, but sustained recovery requires crude to cool below $75.
Also Read: US Stock Market Today: Global Markets Fall as Iran Conflict Lifts Oil and Safe-Haven Demand
Bank Nifty closed lower by 689.35 points or 1.14% at 59,839.65 as banking stocks witnessed selling pressure throughout the session.
PSU banks led the decline with PNB (-2.39%), Yes Bank (-2.32%), Canara Bank (-2.21%) and Bank of Baroda (-1.89%).
The 60,000 psychological support level is now under active threat. A break below this zone could accelerate a move toward 59,500 and critical 59,000 band. Resistance levels are now at 60,437-60,806.
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