New Delhi [India], March 10 : The Indian benchmark indices opened with significant gains on Tuesday. BSE Sensex rose by 591.41 points or 0.76 per cent to reach 78,157.57 at 9:17 am, while NSE NIFTY 50 climbed 158.20 points or 0.66 per cent to 24,186.25.
Shrikant Chouhan, Head Equity Research at Kotak Securities, said, "We are of the view that the current market texture is weak but oversold. For day traders, 24,000-23,900/77,500-77,200 would act as key support zones. Above this, we could see an extension of the pullback move till 24,200-24,300/78,000-78,300."
Chouhan further noted that "the strategy should be to reduce weak long positions between 24,200/24,300 levels," warning that "below 23,900/77,200, the selling pressure is likely to accelerate."
Chouhan stated that if the indices fall below these supports, the market could retest the 23,700/76,500 levels, with a potential downside dragging the index further to 23,500/76,000.
Ajay Bagga, banking and market expert, said, "The market is currently operating on 'headline risk.' While the rally is welcome, we must remain cautious. The Strait of Hormuz remains a logistical bottleneck, and any 'official' confirmation--or contradiction--of Trump's de-escalation claims could send oil back toward the triple digits."
He added that the "Goldilocks" scenario of a quick conflict and falling energy prices is what the bulls are betting on, noting that "cooling crude prices are a massive relief for India's macro-stability."
"Global markets are witnessing a dramatic pivot this morning as the 'Trump Effect' once again dictates the tempo of risk assets," Bagga noted, adding that the shift in market narrative occurred after President Trump asserted that the military operation is "very far ahead of schedule" and "very complete, pretty much."
These comments triggered a liquidation in long oil positions, easing concerns over imported inflation and the fiscal deficit.
"Brent, briefly surging past USD 119 per barrel on fears of a prolonged blockade of the Strait of Hormuz...have retraced significantly, settling back into the USD 86-USD 90 range," Bagga stated.