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Nifty clings to 23,600 as crude and US yields pressure investors
A breakdown of the 23,600 level, which the index has tested in recent trading, could push the Nifty toward its June 8 low near 23,070.
India’s Nifty is hovering close to the 23,600 support level as domestic investors back a rebound while foreign portfolio investors, FPIs, maintain a bearish position, according to LiveMint Markets, citing analyst views.
The outlet said analysts are watching for whether the index can defend about 23,606, noting that a decisive break below the level, last hit on 24 July, could send the Nifty toward its June 8 low of 23,070 and potentially lower.
LiveMint Markets linked the market pressure to a less favorable external backdrop, including a rise in Brent crude over the past month to around $97 a barrel and an increase in the US 10-year Treasury yield to about 4.79%. It also pointed to the Nifty falling 3.27% over the same period to 23,779.15.
The report added that some strategists expect markets could stabilize if crude cools, while also citing that FPIs have sold ₹15,116 crore of Indian cash equities so far this month after being net buyers over the prior two months. It also referenced discussion that higher crude paired with rising US yields can spur outflows of short term foreign capital, though a similar prior episode showed the Nifty rallying after a ceasefire-related shift in expectations.
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