Nifty Points to Weak Market Open, US-Iran Tensions, India VIX and Precious Metal Prices in Focus - 8 Key Stocks to Monitor

Indian Stock Market Witnesses Corrective Session on Wednesday

The key benchmark indices of the Indian stock market witnessed a corrective session on Wednesday, snapping Tuesday's gains amid weak global markets and sector-specific pressure. The Nifty 50 index crashed 198 points and closed at 24,378, while the BSE Sensex nosedived 756 points, finishing at 78,516. The Bank Nifty index corrected 247 points and closed at 57,124.

Sectorally, the tone was mixed, with a sharp sell-off in IT stocks, while auto, banking, and financials also witnessed profit booking after the recent rally. However, select names from the energy, FMCG, and realty spaces showed relative resilience. Notably, broader markets remained relatively stable, with midcaps ending flat and smallcaps gaining over 1%, indicating selective participation.

Gift Nifty Index Opens Lower

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The Gift Nifty index today opened lower at 24,279 and drifted further down towards 24,200 levels, making an intraday low of 24,201. By 7:15 AM, the Gift Nifty index was trading around 24,205.

Market experts expect a gap-down opening in the opening bell today, with the underlying tone turned cautious due to rising geopolitical tensions, elevated crude oil prices, and a crucial phase of the earnings season.

Global Markets Present Mixed Picture

Global cues present a mixed picture, with U.S. markets showing resilience supported by strong earnings and extended ceasefire arrangements. However, signs of profit booking in futures indicate some fatigue at higher levels. Asian markets, despite intermittent strength in Japan, are largely reflecting caution, with weakness emerging in select indices, such as South Korea's Kospi.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Gold and Silver Rates See Selling Pressure

Following today's rally in crude oil prices, gold and silver rates saw selling pressure. The COMEX gold rate today is about 0.75% below its close yesterday, trading around $4,720/oz. The COMEX silver rate today crashed over 2%, trading around $76/oz.

India VIX Remains Elevated

Volatility is expected to remain elevated, with India VIX currently around 18.30, reflecting heightened uncertainty and likely to inch higher if bearish sentiment intensifies.

Stocks to Watch Today

On the domestic front, markets are entering a crucial earnings phase, likely to drive stock-specific volatility. The IT sector remains under pressure following weak commentary from recent results, setting a cautious tone ahead of key announcements. Infosys is scheduled to report its results today, making it a critical trigger for the sector.

Market Experts' Outlook

Market experts, including Shrikant Chouhan, Head Equity Research at Kotak Securities, and Vatsal Bhuva, Technical Analyst at LKP Securities, have provided their outlook for the Nifty 50 and Bank Nifty indices. For day traders, as long as the market trades below 24,500/79000, the weak sentiment is likely to continue. On the downside, it could slip to 24,300/78200. Further downside may also continue, which could drag the index up to 24200/78000.