Oil prices continued their sharp rally as escalating conflict in the Middle East and mounting disruptions to shipping through the Strait of Hormuz pushed traders to reassess supply risks.
US benchmark West Texas Intermediate climbed above $75 a barrel, extending a two-day surge of about 11% — the biggest gain in four years. Brent crude settled near $81 a barrel, reflecting growing concerns that the conflict could disrupt global energy flows.
Global Stock Market Today
The benchmark Nifty index shed 313 points to settle at 24866 spot levels after a highly volatile trading session amid state of war in the Middle East.
The broader markets underperformed the benchmark as Mid and Small cap fell 1.58% & 1.75% respectively.
The majority of sectoral indices, tracked at NSE, ended in deep red. Amongst them, Auto, Consumer Durables and Oil & Gas were the worst performers, down over 2% each followed by Media and PSU banks index that fell close to 2% each.
Gift Nifty is indicating another round of big gap down opening following knee jerk reaction in global equity markets amid ongoing conflict in the Middle East. Volatility is expected to remain on the higher side. Technically, sustained trading below 24600 spot levels might drag indices towards 24300-24000 spot levels in the near term.
Derivatives Overview & Outlook
On Monday, all index futures moved southward on short buildup as Nifty, Banknifty, Finnifty and Midcapnifty futures added 5.9%, 8.7%, 42.6% and 3.4% of of open interest respectively.
Majority of the sectoral indices ended lower on short buildup along with some long unwinding, barring Metal stocks that witnessed some long buildup.
On the option front, call writing was seen at multiple strike implying multiple resistances at higher side. Maximum positions are at 26000 CE followed by 25500 CE and 24000 PE followed by 23500 PE. Options data for current week expiry is negative but oversold, indicating sell on rise trading approch for intraday.
Institutional Trading Activity
Last Monday, FIIs sold stocks worth Rs 3296 Cr in the cash segment, sold index futures worth Rs 3315 Cr and bought stocks futures worth Rs 521 Cr. DIIs were net buyers in the cash segment to the tune of Rs 8594 Cr.
Nifty Futures, Banknifty Futures and Finnifty Futures Key Levels
Nifty – Resistances 25150-25400; Supports 24750-24600
Banknifty – Resistances 60600-61000; Supports 59750-59300
Finnifty – Resistances 27800-28000; Supports 24500- 24400
F&O stocks in ban today – SAMMAANCAP
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