Nifty, Sensex open flat on Tuesday as investors in wait and watch mode on middle east tensions

MUMBAI:Indian stock markets opened on a positive note on Tuesday, continuing their upward movement from the previous session. However, rising geopolitical tensions in the Middle East are keeping investors globally on edge.

The Nifty 50 index opened at 24,977.85, up by 31 points or 0.13 per cent, while the BSE Sensex opened higher by 79 points at 81,869.47, registering a gain of 0.10 per cent in early trade.

Experts said that while market momentum is positive, rising tensions between the US and Iran could become a key concern.

Ajay Bagga, a banking and market expert, said that US markets closed higher on Monday following reports that Iran was making peace overtures through Arab intermediaries.

However, tensions escalated after US President Donald Trump left the G7 summit early, called for a mass evacuation of Tehran, and summoned the National Security Council for a meeting at the White House Situation Room upon his return.

Bagga said, “A possible strike on the main underground Iranian uranium storage and enrichment sites could be on the table. Markets are in wait-and-watch mode on these Middle East developments”.

On the trade front, he added, “On tariffs, we expect a further postponement of reciprocal tariffs from the July 9th deadline to give time for negotiations”.

On the domestic front, broader market indices were also in the green. The Nifty Midcap 50 led the gains, while the Nifty 100 rose by 0.13 per cent and the Nifty Smallcap 100 increased by 0.15 per cent.

Among sectoral indices on the NSE, all sectors except Nifty FMCG, Nifty Metal, and Nifty Pharma opened with gains. Nifty Auto rose by 0.17 per cent, and Nifty Media was the top performer with a 0.62 per cent rise.

Akshay Chinchalkar, Head of Research at Axis Securities, said that the recent market movement showed bullish signs. He pointed out that resistance for Nifty lies between 25,000 and 25,238, while support is between 24,750 and 24,800.

He said, “For the upcoming session, resistance can be seen between 25000 and 25238, while support lies between 24750 and 24800. Global cues are mixed this morning, with Asia up slightly but US index futures in the red. That means our markets could open with a flat to slightly red open”.

In other Asian markets, most indices opened in the green. Japan’s Nikkei 225 rose by 0.49 per cent, Singapore’s Straits Times gained 0.43 per cent, Taiwan’s weighted index climbed 0.7 per cent, and South Korea’s KOSPI advanced by 0.36 per cent.

However, Hong Kong’s Hang Seng and China’s Shanghai Composite were in the red at the time of filing this report. (ANI)