The Sensex and Nifty opened lower on Tuesday as Brent crude stayed above $114, while small-cap stocks outperformed and traders watched key technical levels ahead of the US Federal Reserve meeting.
Indian equities opened cautiously on Tuesday as investors weighed elevated crude oil prices, fresh geopolitical तनाव in the Middle East and the pressure of a busy derivatives expiry session. The market also had one eye on the US Federal Reserve’s policy meeting and the ongoing quarterly earnings season, which is likely to drive stock-specific moves.
The Sensex started 122.37 points, or 0.17%, lower at 73,484.38, while the Nifty 50 fell 44.40 points, or 0.20%, to 22,708.80. Bank Nifty, by contrast, opened slightly higher at 54,420.70, suggesting some resilience in financial stocks even as the broader market tone stayed subdued.
Smaller companies outperformed the main indices early in the session. The Nifty Smallcap 100 rose 1%, while the Nifty Midcap 100 added 0.20%, indicating that investors were still willing to take selective risk outside the large-cap space. Sector performance was mixed, with information technology, fast-moving consumer goods, oil and gas, and private banks in the red, while auto, pharma, public sector banks and realty traded higher.
The rupee also began the day marginally firmer, opening two paise higher at 95.17 against the US dollar after closing at 95.19 in the previous session. Even so, currency weakness remains part of the wider market concern, alongside firm oil prices and global uncertainty.
In a note quoted by NDTV Profit, V. K. Vijayakumar, chief investment strategist at Geojit Investments, said Brent crude staying above $114 and the US 10-year Treasury yield near 4.97% were acting as short-term headwinds. He added that foreign investors were likely to stay defensive in the current macro environment, although domestic fund inflows and improving corporate results could continue to underpin the market.
From a technical perspective, the Nifty 50 was hovering near the 22,700 mark, with 22,800 seen as an important resistance level. Ponmudi R, chief executive of Enrich Money, said the index would need a decisive and sustained break above that zone to open the way towards 23,000. He added that 22,500 was immediate support, with a drop below that level risking a move towards 22,400-22,300.
Options market data also pointed to a tug of war between bulls and bears. The open interest profile showed more call positions than put positions overall, with heavy call interest around 23,000 and strong put writing in the 22,400-22,500 band. That setup suggests the 22,500 zone may be central to whether the current recovery attempt holds.
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