Nifty, Sensex see red amidst Gaza tensions; IT stocks buck the trend

• OMC stocks (HPCL, BPCL and IOC) down around 3% in morning trade.
• Adani Ports opens 3% down due to the ongoing war in Israel.
• IT stocks buck the trend and see green on Nifty50.

Its Monday blues on Dalal Street as both the benchmarks, the Nifty and the Sensex, opened trade with sharp cuts as the conflict between Israel and Palestine intensified resulting in crude prices shooting up almost 4%. The Israeli government has formally declared war on Hamas, after more than 600 Israelis were killed over the weekend in a shocking cross-border raid.

The Nifty 50 opened 0.58% lower at 19,539 while the Sensex opened over 400 points lower at 65,560. The Nifty Bank was also down 300 points at 44,057. The midcap and the smallcap indices also saw 1% shaved off. At the time of

The laggards in morning trade, expectedly, are the OMC (oil marketing companies) stocks falling between 2.5 to 3%. Infact, 48 out of the 50 Nifty companies opened lower with ONGC and TCS as the only two exceptions in the green.

Amongst largecaps, Adani Ports, BPCL, Adani Enterprises, Asian Paints and State Bank of India are the biggest losers. IT stocks – HCL Tech and TCS the top gainers with auto stocks, Eicher and bajaj Auto keeping them company.

At the start of the trading session, the Sensex opened 494.23 points lower, commencing at 65,486.61. Simultaneously, the Nifty opened 161.45 points down, initiating trading at 19,492.05.

Global uncertainties, coupled with the ongoing tensions in Gaza, contributed to the market's weak opening. Nifty opened with a gap down, setting crucial levels for bullish momentum above 19,767.

Despite two unsuccessful attempts to breach these levels, the overall market sentiment remained bullish.

Varun Aggarwal, founder and managing director, Profit Idea, said, "Global worries along with tension at Gaza making market sentiments really weak on opening. Nifty opened gap down and crucial levels for bulls to maintain bullish momentum is above 19767. Market made two attempts but unsuccessful. But overall picture remains bullish. Indian economy stand tall and look quite strong going forward. Major support for index remains at 18887".

The Indian economy continues to exhibit strength, providing confidence for the future. The major support level for the index remains at 18,887, providing a potential buying opportunity for investors.

Market experts suggest that investors should consider selectively picking stocks in sectors such as IT, Media, Oil and Gas, Petrochemicals, and Metals. Additionally, there is significant potential for mid and small-cap stocks at current levels.

"This dip look likely opportunity for investors. IT, Media, Oil & Gas, Petrochemicals, Metals stocks looks good. Lot of scope for mid and small cap stocks from current levels. Investors should selectively pick stocks for medium to long term. OI data for Nifty suggests range of 19200-19800. Heavy put writing at 19000-19200 levels. Bias remains positive and these tensions will be temporary. Investors should not panic & think about next few months", said Aggarwal.

Options interest (OI) data for Nifty indicates a trading range between 19,200 and 19,800, with heavy put writing observed at 19,000-19,200 levels.

Despite the temporary tensions affecting market sentiment, the overall bias remains positive.

Experts advise investors not to panic and maintain a long-term perspective, focusing on the next few months with optimism about the Indian economy's resilience.