Nifty, Sensex open with gains, markets see bears-bulls tug of war due to West Asia tensions

The Nifty 50 index opened at 24,615.95 with a gain of 135.45 points or 0.55 per cent, while the BSESensex opened at 79,530.48 with a surge of 414.29 points or 0.52 per cent.Market experts noted that despite the positive opening, the broader sentiment remains cautious due to global uncertainties and rising geopolitical risks.

Ajay Bagga, Banking and Market Expert, told ANI, “The world is breathing a sigh of relief, but India is still catching its breath. Expect a gap-up opening followed by a tug-of-war between “value hunters” (DIIs) and “exit seekers” (FIIs). Until the Nifty convincingly reclaims the 24,800 mark, consider any rally as an opportunity to lighten positions rather than a signal to go “all-in.” All three, Nifty 50, Bank Nifty and Sensex remain in an ‘oversold” zone, ripe for a bounce. But the Rupee weakness, oil price hike, looming shortage of cooking gas and LNG and the risk to 1 crore Indian expats working or living in the Middle East are all geoeconomic risks that are weighing on Indian markets”.

He added that the global financial landscape is attempting to move past the geopolitical concerns of the past few days.

“The global financial landscape is attempting to shake off the geopolitical chills of the past five days. We’ve moved from “panic stations” to a “relief rally,” though the underlying structural tensions–particularly in energy–remain a thorn in the side of this recovery,” he said.In the broader market indices on the NSE, Nifty 100 gained 0.54 per cent, Nifty Midcap 100 surged 0.71 per cent, while Nifty Smallcap 100 also rose 0.71 per cent during the opening session.

Sectoral indices on the NSE also showed positive momentum. Nifty Auto jumped 0.69 per cent, Nifty IT gained 0.82 per cent, Nifty Metal rose 0.69 per cent, Nifty PSU Bank added 0.67 per cent, and Nifty FMCG moved up 0.38 per cent, indicating positive buying sentiment across sectors.

Meanwhile, Brent crude prices remained firm above USD 82 per barrel, marking the fifth consecutive day of gains.

Gold prices rose by 0.6 per cent in Thursday’s opening to Rs 162542 per 10 gm for 24 karat gold, while silver prices gained 1.86 per cent to Rs 270501 per kg. .Shrikant Chouhan, Head Equity Research at Kotak Securities, said the short-term outlook for markets remains weak but oversold.

“We believe the short-term outlook is weak but oversold. For traders, 24,300/78,500 will act as a key support zone. If the market sustains above this level, immediate resistance will be at 24,600/79,500. Above 24,600/79,500, it could move towards 24,800-25,000/80,000-80,500. Conversely, a drop below 24,300/78500 could change sentiment. Below this, the market could slide towards 24,100-24,000/78000-77800. The market structure is currently highly volatile and is expected to remain volatile in the near future”.Asian markets also showed gains during early trading. South Korea’s Kospi rebounded sharply with an 11 per cent surge to 5584 level after witnessing a historic 12 per cent plunge earlier. Japan’s Nikkei 225 index surged 1.81 per cent to 55285 level, Singapore’s Straits Times gained 0.87 per cent to 4854 level, Hong Kong’s Hang Seng index rose 1.19 per cent to 25531, while Taiwan’s weighted index gained 2.71 per cent to 33719.

In the US and Europe on March 4, markets also witnessed a recovery after a weak start to the week. On Wall Street, the S&P 500 added 0.8 per cent to close at 6869, while the Nasdaq jumped 1.3 per cent to close at 22815, supported by a strong services sector report showing the fastest expansion since 2022.