Global Risk-Off Mood Continues

Indian markets are expected to start cautiously as multiple global factors continue to pressure investor sentiment. Rising crude oil prices, escalating US-Iran tensions and elevated US inflation have pushed global markets into a risk-off mode. Asian markets opened lower while US equities witnessed another broad-based selloff. 0

Despite the negative global backdrop, domestic factors such as rupee strength and stable institutional support from domestic investors could help limit downside volatility.

Key Global Cues

✅ Oil prices continue to rise following fresh US military strikes involving Iran. 1

✅ US futures remain under pressure as geopolitical uncertainty increases. 2

✅ US inflation climbed to 4.2%, the highest level in roughly three years. 3

✅ Asian markets opened in the red amid concerns over inflation and geopolitical risks. 4

✅ Technology stocks continue to face selling pressure globally. 5

✅ Gold remains under pressure after a sharp correction from recent highs. 6

Domestic Market Indicators

Although FII short positions remain elevated, there has been only a marginal reduction from previous levels, indicating that institutional traders remain defensive.

Sectors Likely To Remain In Focus

✅ ONGC and Oil India due to rising crude oil prices.

✅ Power stocks after strong electricity demand growth.

✅ Steel stocks following bullish brokerage commentary.

✅ Textile stocks supported by PLI approvals.

✅ OMCs benefiting from higher ethanol blending incentives.

⚠️ Technology stocks may remain under pressure if the global tech correction persists.

Opening View

The overall setup suggests a weak but range-bound opening. While negative global cues may pressure sentiment initially, domestic support factors could prevent panic selling.

Traders should watch crude oil prices, FII activity and developments in the Middle East, as these are currently the most important drivers of market direction.