Indian markets close flat as crude oil prices rise and traders await US Fed decision

Indian stock markets ended largely flat on Tuesday as high crude oil prices made investors cautious while they awaited the US Federal Reserve's policy decision. The Nifty 50 dropped 0.02 percent to close at 22,749.75, and the Sensex slipped 0.01 percent to settle at 73,598.67. Brent crude traded near $116 per barrel at six-month highs due to attacks on Saudi Arabia.

Market Levels

Jay Thakkar, Vice President and Head of Derivatives and Quantitative Research at ICICI Securities, stated the Nifty 50 tried to move past 22,800 towards 23,000 but failed to sustain gains. The index faced selling pressure at higher levels and briefly slipped below 22,700. India VIX fell nearly 5 percent, pointing to contained volatility. Thakkar noted the immediate trading range for the Nifty 50 is 22,000 to 23,000. Meanwhile, the Bank Nifty index underperformed the main index recently, with a trading range between 53,000 support and 56,000 resistance. Private sector banks are expected to outperform public sector banks within this space.

Stock Picks

Analyst Jay Thakkar recommended buying futures for three companies. For Central Depository Services Ltd, or CDSL, he suggested an entry range of ₹1,210 to ₹1,230, with targets of ₹1,300 to ₹1,350 and a stop-loss below ₹1,150. For Zydus Lifesciences futures, he advised buying between ₹1,170 and ₹1,180, with targets of ₹1,250 to ₹1,300 and a stop-loss below ₹1,130. For Sun Pharmaceutical Industries futures, the recommended entry is ₹1,760 to ₹1,770, with targets of ₹1,840 to ₹1,880 and a stop-loss below ₹1,730.

Context

Stock market indices often trade in narrow ranges or sideways patterns when major global economic announcements and central bank policy decisions are pending. Analysts use technical indicators like trading ranges, support levels, and options data to identify potential short-term buying opportunities during these quiet phases.