Domestic equity market turned cautious in the Tuesday afternoon trade as reports stated a ceasefire violation between Iran and Israel. Markets gave up most of their gains amid profit-booking at close.
From the derivatives front, market sentiment appeared cautiously optimistic. Put writers have shown confidence by adding aggressive positions near the current spot levels, signifying strong intent to defend support zones.
India VIX remained subdued, sliding 2.88% lower to close at 13.64. The volatility index continued to hover below the crucial 15 mark, indicating calm sentiment in the broader market.
“Initial gains in the domestic market, driven by the ceasefire announcement and sharp drop in crude prices, were short-lived as renewed geopolitical tensions in the Middle East unsettled investor sentiment. Adding to the uncertainty was heightened volatility due to expiry day dynamics. Though the market attempted to break out of its recent consolidation range, persistent global risks continue to impede momentum," said Vinod Nair, head of research, Geojit Investments Limited.
“Nifty index continued to oscillate within a narrow band, driven largely by news-based movements. Despite starting the session on a firm note, the index failed to sustain higher levels and succumbed to selling pressure near the resistance zone formed by the previous swing high. However, repeated rejections from the crucial resistance zone of 25,200–25,250 indicate that bulls are struggling to decisively clear this hurdle. A conclusive close above this band is imperative to reignite upward momentum,” said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
“On the downside, the support cluster around 24,750–24,700 continues to act as a strong demand zone, playing a critical role in maintaining the bullish undertone. The index ended the session with a modest gain of 72.45 points, settling at 25,044.35.”
In the morning trade, Domestic benchmarks mirrored a rally in global peers and a steep decline in crude oil prices. The BSE Sensex surged 1,121.37 points or 1.36% intra-day to 83,018.16. However, the benchmark gave up most of the gains. The Sensex settled 158.32 points or 0.19% higher at 82,055.11. The 50-share Nifty surged 72.45 points or 0.29% to end at 25,044.35. The index fell from an intra-day high of 25,317.70.