Indian equity markets are likely to open on a flat note on Tuesday amid mixed global markets. While geopolitical tensions continue to impact market movements, the lack of domestic triggers will keep the market under pressure, said analysts.
Crude oil remains key pressure point
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said: Indian equities are set for a flat-to-negative start on Tuesday, with GIFT Nifty signalling a muted opening. “The key pressure point remains crude oil, with Brent climbing to around $97 a barrel this morning and finally breaking above the ceiling it had respected for four consecutive sessions, as U.S.-Iran tanker attacks and Iran’s threat of imposing a new restricted zone near the Strait of Hormuz heightened concerns over prolonged supply disruptions. With OPEC+ keeping output unchanged, the global oil market has little additional supply buffer to absorb a further disruption,” he said.
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According to Ponmudi R, CEO of Enrich Money, the geopolitical backdrop remains fragile, with the U.S.-Iran conflict showing few signs of easing. Uncertainty surrounding the Strait of Hormuz and the timing of its full reopening continues to underpin concerns over global oil supplies and broader market sentiment.
Asian markets trade mixed
Asian markets are trading on a mixed note, with Japan’s Nikkei 225 largely flat while South Korea’s Kospi is up more than 0.5%. The mixed regional performance suggests investors remain selective in taking on risk as they continue to monitor crude oil prices, geopolitical developments and the outlook for U.S. monetary policy.
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Nifty technical outlook remains weak
Technically, the index on the daily chart formed a bearish candle with a lower high and a lower low, signalling the continuation of the corrective decline, said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
“Immediate bias in the index remains down and sustaining below 24,025 levels will open downside towards the key support area of 23,600-23,500 levels being the confluence of the previous major gap area and the low of July 2026. On the higher side key resistance is placed at 24,150 levels being the confluence of the last week high and 50 days EMA, only a move above the same will signal a pause in the downtrend,” he said.