Stock markets across the world are feeling the heat as Russian President Vladimir Putin announced a military operation in Ukraine to defend separatists in the east of the country. He also vowed retaliation against those who interfere with the Russian Ukraine operation.

The Indian stock market following global peers has tumbled over 3 percent with Sensex crashing 1,878.75 points or 3.28 percent at 55353.31, and the Nifty tumbling 550.60 points or 3.23 percent at 16,512.70.

Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, is of the view that the global markets are swaying on news flows concerning Russia–Ukraine and since the volatility is on the higher side, it has become a nightmare for momentum traders. In such kinds of geopolitical concerns, no analysis works better, and hence, we continue to advise staying light till the time the global uncertainty subsides.

“Meanwhile, one can keep a close watch on the crucial support zone of 17,000 – 16,800, whereas on the flip side, the cluster of resistances is visible at 17,200 – 17,350 – 17,500,” he added.

Among the sectors, the oil and gas index has dipped over 3 percent as crude oil hit the $100 mark since 2014 as traders feared further sanctions that could hit Russia’s crude oil export. Brent crude oil futures were up 3 percent at $99.72 per barrel in Asian trading at 9:20am.

Global oil prices have jumped over 30 percent since November on a sharp increase in demand due to the reopening of global economies as COVID-19 pandemic subsided on higher vaccination rates.

BSE oil and gas fell 2.52 percent at 10:05am dragged by Indraprastha Gas which was down over 4 percent followed by Reliance Industries, Petronet LNG, Gujarat Gas, BPCL and GAIL India which were down over 3 percent each.

Indraprastha Gas, Petronet LNG, BPCL and Mahanagar Gas have hit new 52-week low on NSE.

According to Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, crude trades higher supported by supply risks associated with Russia amid increased tensions with Ukraine and sanctions by western countries. However, weighing on price is API weekly report which noted a bigger than expected rise in US crude oil stocks and increased expectations of higher supply from Iran.

“Crude may remain volatile amid mixed factors and positioning for inventory report however supply risks may result in buying interest at lower levels,” he said.