Best Intraday Stocks to buy – Vaishali Parekh

Market Sentiment Weak Amid War Fears

The Indian stock market witnessed a sharp sell-off as escalating tensions between the US and Iran in the Middle East pushed global crude oil prices above $100 per barrel, triggering fresh macroeconomic concerns for India — a major crude-importing economy. The surge in oil prices heightened uncertainty across financial markets and led to broad-based selling across benchmark indices.

Market volatility also surged alongside the decline. India VIX jumped to 23.59, rising more than 70% within a week, reflecting heightened investor anxiety due to geopolitical risks. Such a steep rise in volatility typically results in inflated option premiums, prompting derivatives traders to adopt a cautious approach. Any sudden easing of geopolitical tensions could lead to a sharp decline in volatility and rapid compression in option premiums.

Nifty 50 Outlook

According to Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, the undertone of the Indian stock market has turned weak as geopolitical uncertainties continue to weigh on investor sentiment.

Parekh noted that the Nifty 50 witnessed another sharp gap-down opening, creating a significant downside gap and touching the 23,700 zone during the session. With geopolitical tensions continuing to escalate, the overall market trend remains weak and investor sentiment increasingly nervous.

She added that if the current geopolitical situation worsens further, the index could retest its previous major support near the 22,000 zone. However, any positive development or easing of tensions could trigger a sharp technical recovery.

From a technical perspective, the index needs to sustain above the crucial resistance level of 24,400 to improve the overall market bias and restore confidence among investors.

Bank Nifty Outlook

The Bank Nifty index also witnessed significant weakness after opening with another sharp gap-down move. The index broke below the base of its rising channel support near the 56,500 level, indicating deterioration in the overall trend.

According to Parekh, with the bias currently weak, the index could see further downside towards the 53,500 zone, which is likely to act as a major support area.

On the upside, the index will need to move above the 200-period moving average near the 57,500 level to improve the overall bias. Sustaining above this level could help restore stability and trigger a more meaningful recovery in banking stocks.