Nifty Slips Below 24,500 as Crude Oil Spike and F&O Volatility Dampen Market Sentiment
Indian equity benchmarks ended lower on Tuesday, August 11, as investor sentiment faced pressure. The Nifty 50 slipped below the critical 24,500 mark, driven by a rebound in crude oil prices. This decline occurred amid heightened volatility associated with the weekly Futures and Options (F&O) expiry.Analysts are now pivoting focus toward key international data. The upcoming U.S. Consumer Price Index (CPI) release scheduled for Wednesday is expected to provide fresh guidance on global interest-rate expectations, setting the stage for broader market movement.
Technical Outlook: Nifty Finds Immediate Support
Technical analysis indicates that the Nifty 50 index has breached several near-term moving averages, signaling underlying weakness in its short-term trend. However, Rupak De, Senior Technical Analyst at LKP Securities, noted that a strong immediate support stands firm at 24,400.For those monitoring higher levels, resistance remains set between 24,600 and 24,650. Mr. De added that sentiment is likely to remain positive as long as the index manages to sustain above the crucial 24,400 level. Conversely, he cautioned that a decisive fall below this support could lead to a weakening of market sentiment.
Market Fear Gauge: India VIX Rises Sharply
The fear gauge for Indian markets, the India VIX, registered a significant climb during trading. It rose by 3.73% in the session, closing at 11.79 levels. This elevated volatility reflects the nervousness and risk sentiment prevalent among market participants on Tuesday.Rupee Weakens Amid Crude Oil Pressure
The Indian rupee traded weaker on Monday as global commodity trends put pressure on the domestic currency. The rupee declined by around 15 paise, settling at 95.43. The rally observed in crude oil prices was cited as a primary factor contributing to this currency depreciation.Institutional Flows and F&O Ban Details
Foreign portfolio investors (FPI) injected capital into equities on Tuesday, net buying shares worth Rs 258.55 crore. Domestic institutional investors (DIIs) also added support, adding shares valued at Rs 24.77 crore.The securities included in the F&O ban segment are those companies where the security has crossed 95% of the market-wide position limit. The pre-market trading phase provides a critical setup for setting expectations for the day's session.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.