Indian equity markets opened lower on Wednesday, with the Sensex starting at 81,845.50 and the Nifty at 25,089.95, influenced by weak global cues and concerns over upcoming US economic data.

The GIFT Nifty futures were trading nearly 200 points below the Nifty’s previous close, signaling a gap-down opening. This downturn follows a sharp decline on Wall Street overnight, where optimism around artificial intelligence faded and weak US manufacturing data revived recession fears.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “This Wednesday morning, markets are sending mixed signals... For Nifty and Sensex to bounce, they must break their all-time highs, with strength confirmed only above Nifty 25334.”

As of 9.30 am, the top gainers on the NSE were Asian Paints (1.52 per cent), BPCL (0.73 per cent), Apollo Hospitals (0.18 per cent), Grasim (0.11 per cent), and Hindustan Unilever (0.03 per cent). The top losers included ONGC (-2.61 per cent), Wipro (-2.29 per cent), LTIMindtree (-1.95 per cent), Infosys (-1.82 per cent), and JSW Steel (-1.68 per cent).

Shrikant Chouhan, Head Equity Research at Kotak Securities, commented on the market’s recent performance, saying, “It seems the market is currently non-directional, and traders may be waiting for a breakout on either side.”

Investors are closely watching a series of US economic data releases this week, including job openings, jobless claims, and the nonfarm payrolls report on Friday, which could influence the Federal Reserve’s rate cut decision.

In the commodities market, gold and silver extended their decline ahead of these key US economic data releases. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, stated, “Gold finds support at $2,478-$2,461, with resistance at $2,512-$2,527.”

Crude oil experienced a significant sell-off, with prices dropping nearly 5.0 per cent in international markets. Kalantri added, “Crude oil has support at $68.70-$68.00 and resistance at $70.10-$70.75.”

In the auto sector, Arun Agarwal, VP-Fundamental Research at Kotak Securities, reported, “In August 2024, passenger vehicle, commercial vehicle and the tractor segment saw weak wholesale volume performance.”

Foreign institutional investors (FIIs) continued their buying streak for the fourth consecutive session on September 3, purchasing equities worth ₹1029 crore. Domestic institutional investors also extended their support, buying equities worth ₹1986 crore on the same day.

The INDIAVIX, which measures market volatility, was down by 1.55 per cent yesterday and is currently trading at 13.8425.

As the market navigates through these mixed signals and global uncertainties, analysts advise caution and suggest keeping an eye on key support and resistance levels for both Nifty and Bank Nifty.

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