Nifty, Sensex Fluctuate Amid Escalating India-Pakistan Tensions: SEBI RA Flags Key Levels To Watch

Indian stock markets traded cautiously early on Wednesday as border tensions with Pakistan escalated, with the benchmark indices recovering some ground after opening in the red. 

In response to the fatal Pahalgam terror attack last month, Indian Armed Forces launched 'Operation Sindoor' early Wednesday, conducting precise missile strikes on nine terrorist locations in Pakistan and Pakistan-occupied Kashmir (PoK). 

All eyes will be on the Indian Army briefing at 10:30 am. The Ministry of Home Affairs has ordered nationwide mock drills on Wednesday at 4 pm. 

Around 10:00 a.m. IST, the benchmark Nifty traded below 24,400, while the Sensex was marginally lower at around 80,500. Broader markets mirrored these losses.

Data on Stocktwits showed retail sentiment for the Nifty 50 remained 'neutral.'

Sectorally, financials are seeing strong buying, while IT, FMCG, pharma, and real estate stocks are under pressure.

Tata Motors gained 4% as shareholders have approved the company's demerger into two separate listed entities, one for passenger vehicles and another for commercial vehicles.

Defense stocks like BEL (+1%), Mazgaon Dock (+4%), and Paras Defence & Data Patterns (+3%) are gaining traction on investors' radars amid heightened security sentiment post-strike.

Meanwhile, stocks tied to India's export economy rose after India signed a free trade agreement with the United Kingdom on Tuesday. Tariff eliminations helped Gokaldas Exports (+8%), Vardhman Textiles (+4%), and Arvind (+3%) gain momentum.

The agreement is expected to benefit key sectors like apparel, auto components, carpets, and marine products, unlocking new opportunities in the UK market.

Alcobev stocks reacted mixed: Radico Khaitan rose 3%, but United Spirits slipped 1% after India agreed to halve tariffs on UK whisky and gin—from 150% to 75%.

Paytm gained 5%, Piramal Enterprises rose 6%, while GCPL and MGL traded 1% as investors parsed their fourth-quarter earnings fine print. 

Investors will monitor Punjab National Bank, Coal India, Tata Chemicals, Dabur, Voltas, and Sonata Software as they report quarterly numbers later in the day. 

A SEBI-registered research advisor shared the day's trade set-up on Stocktwits.

Prabhat Mittal identified Nifty support at 24,280 and resistance at 24,620. For Bank Nifty, he pointed to support at 53,700 and resistance at 55,000.

Asian markets were mixed as China's central bank slashed key interest rates. Meanwhile, Dow Futures traded higher as investors monitored US-China trade deal negotiations that are set to begin this week.

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