New Delhi

Domestic equity markets began the week on a subdued note, reflecting investor caution amid rising global geopolitical tensions. The BSE Sensex slipped 112.95 points, or 0.15 per cent, to 73,206.60 in early trade, while the NSE Nifty 50 edged down 16.35 points, or 0.07 per cent, to 22,696.75 at around 9:16 am.

Among sectoral performers, stocks such as Wipro, Hindalco Industries, Titan and Trent posted gains, whereas Kotak Mahindra Bank, InterGlobe Aviation, Tata Steel and Bajaj Finance were among the laggards. Broader markets also remained under pressure, with midcap and smallcap indices declining by about 0.5 per cent each.

Market experts pointed to heightened uncertainty linked to developments in West Asia. According to analyst Ajay Bagga, investor sentiment remains fragile following an extension of a key geopolitical deadline involving Tehran. He noted that while some Asian markets showed resilience, domestic markets are weighed down by significant foreign institutional investor (FII) short positions.

Bagga added that derivatives data indicates a cautious outlook, with GIFT Nifty signalling a weak start. He also warned that markets could remain volatile in the near term, although any positive geopolitical developments may trigger a sharp rebound.

Echoing a cautious stance, Shrikant Chouhan of Kotak Securities said benchmark indices witnessed choppy movements in the previous truncated week, ultimately ending lower. He observed that pharma and healthcare stocks underperformed, while IT stocks provided some support.

From a technical perspective, Chouhan said the indices are still forming lower highs on daily charts, indicating underlying weakness. However, momentum indicators suggest the possibility of a short-term recovery.

He identified the 22,400–22,500 range on the Nifty as a crucial support zone, warning that a breach could lead to further downside. For Bank Nifty, he pegged 50,500 as a key level, with potential upside if sustained above it, but cautioned that slipping below this mark could weaken sentiment.

Sunil Gurjar, founder of Alphamojo Financial Services, highlighted that the Nifty has formed a “hammer” pattern near a support zone—typically seen as a sign of buying interest at lower levels. He said this could support a near-term bounce, although a breakdown below support may trigger renewed selling pressure.

READ MORE: Delhi Advocate Ekta Pareek fights for clean environment, animal rights

Overall, analysts expect Dalal Street to remain sensitive to global cues, particularly geopolitical developments, with volatility likely to persist in the coming sessions.