The Indian benchmark indices witnessed losses on Tuesday as the Sensex fell 87 points to settle at 76,748 and the Nifty declined 8 points to close trade at 23,985 at 3:30 PM.
Previously, during the early morning session, the Sensex rang the opening bell near 76,800, slipping a little over 30 points, while the NSE Nifty50 stood just under 24k, down 18 points, as of 9:15 AM.
Asian Markets Slide Before Big Tech Earnings
Asian equity markets traded lower on Tuesday as investors trimmed exposure to technology stocks ahead of earnings announcements from Amazon, Meta Platforms and Apple.
South Korea’s Kospi plunged more than 8 per cent, weighed down by a sharp sell-off in SK Hynix, whose shares fell around 10 per cent.
Japan’s Nikkei 225 also came under heavy selling pressure, declining 3.84 per cent, while Australia’s S&P/ASX 200 slipped 0.23 per cent.
Wall Street Ends Mixed
US markets ended on a mixed note overnight.
The Nasdaq Composite slipped 0.18 per cent as technology stocks remained under pressure, while the Dow Jones Industrial Average rose 0.51 per cent. The S&P 500 edged up 0.02 per cent.
Investors remained focused on the upcoming corporate earnings season, which is expected to offer fresh direction to global equity markets.
Oil Extends Decline on US-Iran Diplomacy Hopes
Crude oil prices continued to weaken as optimism grew over a possible diplomatic breakthrough between the United States and Iran.
US President Donald Trump said talks with Tehran were progressing well, although he warned that military action remained an option if negotiations failed. Iranian officials also struck a relatively positive tone on the discussions.
The July Brent crude futures contract traded at $87.52 per barrel, down 0.95 per cent in early trade.
Lower crude oil prices are generally considered favourable for India as they help ease inflationary pressures and reduce import costs.
Gold, Silver Trade Lower
Precious metals also remained under pressure.
Gold futures fell 0.67 per cent, while silver futures declined 1.79 per cent in early trade as investors shifted their attention to upcoming macroeconomic data and corporate earnings.
Technical View
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, Monday’s rally reflected broad-based buying across sectors, with tourism, media, realty and information technology stocks emerging as the strongest performers.
He said the market formed a bullish daily candlestick pattern after maintaining upward momentum throughout Monday’s session, indicating that near-term sentiment has improved.
Chouhan believes the ongoing recovery could continue as long as the Nifty holds above the 23,800 level (or around 76,300 on the Sensex). On the upside, he expects the index to test its 20-day simple moving average in the 24,100-24,150 zone. However, a break below the key support could trigger fresh selling pressure, pulling the Nifty towards the 23,700-23,600 range.
He also advised investors to use any further recovery to trim weaker long positions near the resistance zone, while considering selective fresh buying on declines closer to support levels where the risk-reward equation appears more favourable.
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