Nifty 50 closed the day in red, down by 0.74%, closing at 23,997.55 amid the weight of the global energy shock. The session was mostly dominated by the sentiment triggered by crude prices reaching the high of $120.52. The surge in crude oil prices is expected to threaten India’s fiscal deficit and fuel fears of imported inflation. Rising crude oil prices, the blockade of the Strait of Hormuz, and the risk of rising inflation , sided with a major sell-off in rate-sensitive sectors like banking and real estate. The index struggled to stay above the key mark of the 24,000 level. The session was guided by the shifting stance of the US Federal Reserve, leaving the technical outlook for the Indian markets cautious heading into the new month.

Bank Nifty stumbled by 0.98% as it faced the heat of crude oil prices surging to 4-year highs at $120.45. The index, being a high-beta sector, was hit hardest amid soaring oil prices, which led to a surge in bond yields and thus forced the RBI to maintain a higher interest rate stance for longer. Banks like Axis Bank, ICICI Bank, and Sri saw significant selling as FIIs continued to offload liquid assets amid heightened geopolitical tensions, with no conclusion being reached in the talks between the US and Iran.

Nifty Auto mirrored the broader index and plunged by 0.64% to settle the day at 25,917.60, as the sector faced significant pressure amid a spike in crude oil prices to $120.52, raising concerns over rising input costs and a hit to consumer discretionary spending. Though the index got some support from positive sentiment from Maruti Suzuki’s strong Q4 FY26 results announced just a day prior, which had highlighted a robust order. But upside continued to remain capped amid energy shifter macroeconomic events and logistic anxieties continued to weigh on the sector’s gains.

Meesho shares jumped by almost 12%, after three consecutive days of decline. Euphoria in the stock was witnessed as JP Morgan gave target prices of Rs215. Also adding positivity to the stock is that Meesho is building a discovery-led marketplace, catering to fragmented marketplaces, which will act as a long-tail advertising network with embedded logistics.

NIFTY DAILY CHART

Nifty couldn’t sustain the previous day’s gain and plunged to the low of 23,796.85. But recovery was seen from the crucial support of 23,800 and the index managed to close at 23997.55. Index to reclaim the level of 24,000 level must breach 24,080 and must sustain above the given level. RSI is also seen inching lower at 49.87, but this level is still an indication of room for upside in the index.

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