Nifty Surpasses 24,250: Sustainability of Upside Move Questioned Amid High Crude Oil Prices

Indian Markets Surge Amid Quarterly Earnings and Crude Oil Price Volatility

The Indian benchmark indices, Sensex and Nifty, have crossed key upside levels on April 29, driven by stock-specific gains following quarterly earnings announcements. Despite crude oil prices staying above $110 per barrel, the market indices have shown a significant rebound.

Maruti Suzuki shares led the charge, jumping 4.6% after the country's top carmaker posted a surprise decline in March quarter profit. The surprise drop had led to a 2.5% decline in Maruti Suzuki shares on April 28. However, multiple brokerages cited steady demand and volumes as positives, contributing to the rebound.

At 10:18 am on April 29, the Sensex was up 822.33 points, or 1.07 percent, at 77,709.24, while the Nifty was up 251.80 points, or 1.05 percent, at 24,247.50. Market activity was mixed, with 2175 shares advancing, 1233 shares declining, and 172 shares unchanged.

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Despite the market's current momentum, concerns remain about the sustainability of the upside move amid the ongoing delay in US-Iran peace talks and the continued closure of the Strait of Hormuz. This development has led to increased crude oil prices, which are currently above $110 per barrel.

Market strategists are closely watching the potential impact of these developments on the market. Anand James, Chief Market Strategist at Geojit Investments Limited, noted that the Nifty is potentially eying 24350-470 initially. However, if it fails to breach the 24050 region, the threat of a 23500 downmove may persist.

The market will also be closely watching the political developments after the state elections end on April 29. The exit polls this evening may provide indications of possible outcomes. Additionally, the Fed decision today will be closely watched, especially in the light of the uncertainty surrounding the West Asia conflict and rising inflation.

In terms of technical analysis, Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, noted that the downside risk remains high as long as crude prices remain elevated. He highlighted the 23750–23700 region as a crucial support zone, and a breach below this zone could accelerate downside pressure.

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

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