Oil Price Volatility: Vaishali Parekh Identifies Three Stocks for Consideration Amid Market Uncertainty
Indian Stock Market Witnesses Sharp Selling Amid US-Iran War and Crude Oil Price Volatility
Key Market Indicators:
- Nifty 50 index ended 227 points lower at 23,639
- BSE Sensex crashed 829 points and closed at 76,034
- Bank Nifty index nosedived 634 points and closed at 55,100
Market Analysis
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The Indian stock market experienced sharp selling for the second consecutive session on Thursday, driven by the ongoing US-Iran war and renewed volatility in crude oil prices. The surge in crude oil prices above $100 per barrel poses a significant challenge to India, given its heavy dependence on energy imports. Rising oil prices increase input costs across sectors, raise inflation risks, and often dampen investor confidence in equities.
Sectoral Performance
The Nifty Auto index fell nearly 3% as companies sensitive to fuel and commodity costs came under pressure. Stocks such as Mahindra & Mahindra, Maruti Suzuki, and Eicher Motors were among the major laggards, reflecting concerns that higher fuel prices and input costs could weigh on margins and consumer demand.
Volatility Indicators
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Volatility indicators signal continued caution in the market, with the India VIX remaining elevated near the 21 level, suggesting that traders are still pricing in heightened uncertainty and near-term volatility amid evolving geopolitical developments.
Technical Analysis
Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladdher, believes the undertone of the Indian stock market has turned weak. The Nifty 50 index has crucial near-term support at the 23,500 zone, which needs to be sustained; failing which, the 50-stock index may try to test the 22,800 levels.
Stock Recommendations
Vaishali Parekh recommends the following buy-or-sell stocks for intraday trading:
- Shipping Corporation of India: Buy at ₹247, Target ₹260, Stop Loss ₹242
- NALCO: Buy at ₹405, Target ₹415, Stop Loss ₹400
- ABB India: Buy at ₹6400, Target ₹6550, Stop Loss ₹6350
Investor Takeaway
Investors should be cautious of stocks sensitive to fuel and commodity costs due to rising oil prices.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
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