A huge fall was seen in the stock market on Tuesday. Due to rising geopolitical tensions and rise in crude oil prices, BSE Sensex fell by 524 points and NSE Nifty fell by 145 points. Selling pressure was also seen in global markets.
New Delhi [भारत]July 14 (ANI): Domestic stock markets opened in the red on Tuesday amid rising geopolitical tensions and rising crude oil prices, leading to massive selling by investors.
BSE Sensex fell by 524.12 points or 0.68 percent to 77,092.28 points. Similarly, the broader NSE Nifty 50 declined 145.20 points, or 0.60 per cent, and was trading at 24,065.80.
Commodity market boom
At the time of reporting, commodities were trading flat, with Brent crude up 1.88 per cent (+US$1.56) at US$84.86 a barrel and crude oil up 2.24 per cent (+US$1.75) at US$79.89 a barrel. Meanwhile, gold traded at USD 4,015.28, up 0.34 per cent (+USD 13.49).
Reason for market decline
Market experts noted that as international pressure increases, internal support mechanisms remain important to prevent further major downside. “The global financial landscape is set for a highly volatile and stressful trading session today,” said banking and markets expert Ajay Bagga.
Bagga attributed the current market weakness to international developments, which overshadowed domestic cues. This change in investor sentiment came despite the start of the corporate financial reporting cycle in Western markets.
In the US market, major indices are trading in the red, with Dow Jones futures down 167.87 points at 52,330.77, S&P 500 down 60.05 points at 7,515.34, and Nasdaq leading the way with a fall of 408.43 points at 25,873.18.
“The dangerous confluence of escalating military conflict in the Middle East, hawkish rhetoric from central banks and key inflation data forthcoming has created a risk-off environment, even as earnings season begins in the US with the outlook for strong corporate earnings growth,” Bagga said.
Bagga noted that regional market indicators had indicated a weak start for Indian equities even before the bell. “With GIFT Nifty opening gap-down and Asian markets in the red, Dalal Street is set for a turbulent ride on the usually volatile weekly Nifty expiry day,” he said.
condition of asian markets
In Asian markets, significant losses were recorded, with the Taiwan Weighted Index falling 3.81 percent (-1,667.25 points) to 43,713.27, and the Kospi falling 3.51 percent (-230.97 points) to 6,575.96. Other indices in the region also declined, including India’s GIFT Nifty, Japan’s Nikkei 225, Hong Kong’s Hang Seng, Shanghai Composite, Straits Times and SET Composite.
Bucking regional trends, the Jakarta Composite gained 0.66 percent (+40.41 points) to 6,078.25.
Expert told important support and resistance levels
“We believe the 20-day SMA (Simple Moving Average) or 24,000/77000 will act as a key support area for short-term traders,” said Shrikant Chauhan, Head of Equity Research, Kotak Securities. According to Chauhan, there remains broad positive momentum for the indices, provided the market remains above these specific fundamental numbers.
“On the upside, 24,275/77,800 may act as immediate resistance for day traders. If the market successfully overcomes this level, the rally may continue towards 24,350-24,400/78,000-78,200,” he said.
“On the other hand, below 24,000/77,000, the uptrend may weaken, and a gradual decline towards 23800/76400 may follow,” Chauhan concluded. (ANI)
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