Markets Slip As US-China Trade Probe Reports Emerge; Crude Spike Adds Pressure

Indian equity markets started Friday’s session on a weaker note as investors reacted to reports suggesting that the United States might reopen an investigation into China’s 2020 trade agreement.

A surge in global crude oil prices following new US sanctions against Russia further dampened sentiment.

At the opening bell, the Sensex declined by 113 points (0.13 per cent) to 84,443, while the Nifty slipped 27 points (0.10 per cent) to 25,866.

Market analysts noted that Nifty’s technical indicators continue to show a sideways-to-bullish pattern, provided it stays above the crucial support levels of 25,700–25,750.

“Immediate resistance is placed at 25,950, with further upside targets at 26,000 and 26,100. The overall trend remains bullish, provided the index sustains above 25,780 on a closing basis,” they further added.

Sectoral Performance

Among key laggards were Hindustan Unilever, Kotak Bank, Axis Bank, Titan, Power Grid, ITC, NTPC, Tech Mahindra, and Maruti Suzuki, which declined by up to 3.5 per cent. Meanwhile, ICICI Bank, Tata Steel, Bharat Electronics (BEL), Mahindra & Mahindra, Bharti Airtel, HDFC Bank, and State Bank of India traded with modest gains, cushioning the broader market fall.

In the broader space, sentiment remained slightly positive as the Nifty MidCap index edged up 0.05 per cent and the Nifty SmallCap index gained 0.09 per cent.

From a sectoral perspective, metal stocks led the gains, with the Nifty Metal index rising 1 per cent, supported by strength in global commodity prices.

The Realty and Financial Services indices also posted marginal advances.

In contrast, FMCG shares came under pressure, dragging the Nifty FMCG index down by 1.4 per cent, making it the session’s biggest underperformer.

“Given the current setup of heightened volatility and mixed market signals, traders remain advised to adopt a cautious ‘buy-on-dips’ approach, especially when using leverage,” analysts advised.

Analysts further advised investors to secure partial gains during market rallies and use strict trailing stop-losses to safeguard against potential downturns.

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