The Indian stock market displayed mixed signals on Tuesday, with the India VIX volatility gauge closing at 16.13, down by 3.41% from its last closing. Analysts suggest that while there is buying interest at lower levels, some near-term weakness persists.
Rupak De, Senior Technical Analyst at LKP Securities, noted that the index found support near the 20EMA on the hourly chart, indicating buying interest at lower levels. Despite the bearish crossover in the hourly RSI, the broader short-term sentiment remains positive. A rebound in the coming sessions is possible, with 24,200 acting as immediate resistance and support placed at 23,900.
In the US, the S&P 500 and the Nasdaq traded near record highs, buoyed by AI-fueled optimism despite geopolitical tensions in the Middle East. The S&P 500 and the Russel 2000 both touched intraday record highs, driven by upbeat earnings and renewed confidence in AI trade.
“Despite this, the broader short-term sentiment continues to remain positive, and the possibility of a rebound in the coming sessions cannot be ruled out.”
Rupak De, Senior Technical Analyst at LKP Securities
European markets, however, slipped as doubts over the prospects of a deal to end the conflict with Iran weighed on sentiment. The pan-European STOXX 600 fell 0.6% to 628.01 points, with most regional bourses trading lower except for London's FTSE 100, which rose 0.2%.
Bajaj Broking highlighted that Nifty formed a bearish candlestick pattern on the daily chart, signaling a lack of follow-through buying. The index is testing the upper band of the breakout area, with immediate support at 23,600 and major short-term support at 23,200-23,000.
Background
The global markets are currently navigating a complex landscape of geopolitical tensions and technological optimism. The ongoing conflict in the Middle East and the potential for AI-driven growth are key factors influencing investor sentiment.
Looking ahead, market participants will be closely monitoring geopolitical developments and their impact on global markets. The potential for a rebound in the Indian market remains, contingent on overcoming immediate resistance levels.
