The Middle East is once again experiencing rising tensions. The united states responded with airstrikes after Iran allegedly attacked three tankers in the strait of Hormuz.The U.S. also cancelled the exemption that allowed Iran to export oil to the world market. Crude oil prices have surged nearly 4% to around $76 a barrel.
Renewed tensions in the middle East and a sharp rise in crude oil prices have dampened sentiment across globel markets. Gift Nifty fell over 200 points .at the same time , foreign instituonal investors (FIIs)continued thier buying spree in the cash market for the third day in a row also covered some of their short positions.
Asian markets trade mixed.KOSPI has edged up mildly after yesterday's sharp fall. Profit-booking was also seen in U.S.Indices at higher levels.The U.S>doller index is above 101, and U.S. Treasury yields have risen sharply. Ahead of the release of the FOMC minutes, gold and Silver prices have dropped with Silver down almost 3%.
CNBC Awaaz's Virendra Kumar advises caoution as geopolitical tensions weigh on the markets. Nifty faces resistance at 24,424-24,531 & support at 24,261-24,193. FII buying continues but heavy call writing and weakness in AI theme points to volatility.Nifty IT is the sector to watch.
The bank nifty apporach
The Bank Nifty's first resistance is between 58,,512 and 58640,while its main obstacle is between 58,891 and 59,067/59,273. This has Two bases :58,010/57,810 for the first base and 57,530-57,415 for the larger base . At 58,500 zones ,call writing is a significant barrier. The bank Nifty was under pressure from 10 DMA during the past 10-12 sessions. Put writers in the 58,000 zone are really supportive. Above the base-1 level, the Bank Nifty is still strong. The likelihood of a base-2 will rise if you settle below 57,810.
