- Indian benchmarks opened lower amidst global weakness, elevated crude prices.
- Weak Wall Street and Asian markets fueled cautious sentiment.
- Sensex and Nifty declined; analysts predict cautious, non-directional setup.
Indian benchmark indices opened lower on Thursday, October 1, as concerns over persistent supply disruptions from the West Asia region continued to weigh on sentiment. Firm crude oil prices, weak Asian markets and overnight losses on Wall Street added to the cautious mood.
The BSE Sensex opened near 72,300, tanking more than 150 points, while the NSE Nifty50 rang the opening bell a little above 22,550, taking a hit of 58 points, as of 9:15 AM.
GIFT Nifty Signals Weak Opening For Dalal Street
The domestic market began the session on a weak footing, with GIFT Nifty futures quoted at 22,614, down 94 points, indicating that the Nifty50 could extend its previous-session losses.
At around 9:06 am, the Sensex was trading at 72,153.66, down 326.63 points or 0.45 per cent, while the Nifty declined 109.40 points or 0.48 per cent to 22,511.05.
Although Brent crude pared some of its recent gains, investors remained concerned about the possibility of prolonged supply disruptions from West Asia. The elevated oil prices have also kept inflation risks on the radar.
Asian Markets Under Pressure
Most Asia-Pacific markets traded lower in early Thursday deals as investors assessed the inflation implications of higher energy prices and tracked the overnight weakness on Wall Street.
South Korea’s Kospi declined 0.18 per cent, while Australia’s S&P/ASX 200 fell 1.24 per cent.
The weakness across regional markets added to the cautious tone for Indian equities at the start of the new trading session.
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Wall Street Ends Lower; US Bond Yields Stay Elevated
US equities also closed lower overnight.
The Dow Jones Industrial Average declined 0.86 per cent, while the S&P 500 slipped 0.25 per cent. The Nasdaq Composite ended 0.24 per cent lower.
Meanwhile, the benchmark 10-year US Treasury yield settled at 5.29 per cent, remaining close to its highest level since 2007.
Brent Crude Nears $98 Amid Supply Concerns
Crude oil remained a key market trigger on Thursday.
Brent crude prices edged lower in Asian trade after indications that exports from the West Asia region were beginning to recover. The October Brent futures contract was quoted at $97.90 per barrel on the Intercontinental Exchange, down 0.13 per cent.
Despite the marginal decline, oil prices remained elevated, keeping concerns over inflation and the broader economic impact of higher energy costs in focus.
Gold, Silver Futures Trade Higher
Precious metals moved in opposite directions from equities and crude.
Gold futures gained 0.14 per cent, while silver futures rose 0.84 per cent in early trade.
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Kotak Securities Sees Cautious Near-Term Setup
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said benchmark indices remained under pressure after witnessing profit booking at higher levels in the previous session.
The Nifty closed 95 points lower, while the Sensex declined 49 points. Sectoral performance remained mixed, with the Media index gaining 2.63 per cent, making it the best-performing sector. The Healthcare index was the weakest, falling 2.50 per cent.
According to Chouhan, the market initially traded quietly but faced resistance around 22,800 on the Nifty and 73,000 on the Sensex, following which the indices reversed sharply. From their intraday highs, the Nifty and Sensex fell nearly 200 points and 650 points, respectively.
He noted that the Nifty formed a bearish candle on the daily chart, while intraday charts continued to show a “lower-top formation”, keeping the short-term setup cautious.
Nifty Support At 22,500, Sensex At 72,000 In Focus
For intraday traders, Chouhan identified 22,600-22,550 on the Nifty and 72,400-72,200 on the Sensex as important support levels.
Holding above these zones could lead to a recovery towards 22,750-22,800 on the Nifty and 72,800-73,000 on the Sensex.
However, a decisive move below 22,500 on the Nifty and 72,000 on the Sensex could increase selling pressure, with the indices potentially moving towards 22,300-22,150 and 71,400-71,000, respectively.
Chouhan described the intraday setup as “non-directional”, suggesting that traders should focus on key technical levels and maintain disciplined risk management.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
