Nifty Climbs Amid Mildly Positive Sentiment, While Oil Prices Rebound

Indian Benchmark Indices Expected to Open Marginally Higher on Monday

The Indian benchmark indices are poised to open with a positive bias on Monday, despite a sharp selloff in the previous session. The GIFT Nifty, a key indicator, is trading at 23,737, up 47 points or 0.2 percent from the previous close, indicating a mildly positive opening for the Nifty 50.

The Sensex had plunged 1,092 points, or 1.44 percent, to close at 74,775.74, while the Nifty fell 359 points, or 1.5 percent, to settle at 23,547.75 amid broad-based selling pressure. However, global cues were largely supportive, with Asian markets advancing on Monday, driven by continued enthusiasm around artificial intelligence-linked stocks.

Asian Markets Advance

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Japan's Nikkei gained 0.5 percent after rallying nearly 5 percent last week to record highs, while South Korea's Kospi rose 1.3 percent after surging 8 percent last week. MSCI's broadest Asia-Pacific index outside Japan added 0.2 percent. The gains in Asian markets were driven by continued enthusiasm around artificial intelligence-linked stocks.

Technology Stocks Remain in Focus

Technology stocks remained in focus globally after reports that Nvidia CEO Jensen Huang is expected to meet senior executives from Samsung Electronics and LG Electronics later this week. Samsung shares jumped nearly 10 percent on Monday, lifting the company's market capitalisation above $1.3 trillion, while LG Electronics surged as much as 28 percent on expectations of deeper AI and robotics partnerships.

Wall Street Ends at Fresh Record Highs

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Wall Street also ended at fresh record highs on Friday. The Dow Jones Industrial Average rose 363 points, or 0.72 percent, to close above the 51,000 mark for the first time. The S&P 500 gained 0.22 percent to 7,580.07, while the Nasdaq Composite added 0.21 percent to finish at 26,972.62. Strong earnings momentum and continued investor appetite for AI-linked stocks helped drive the gains.

Oil Prices Rebound

However, oil prices rebounded sharply after tensions in the Middle East resurfaced. Brent crude rose more than 2 percent to around $93.3 per barrel, while U.S. crude climbed nearly 3 percent to $89.7 per barrel after Israel expanded military operations in Lebanon, raising concerns that progress on a U.S.-Iran agreement could be delayed.

Foreign Institutional Flows Remain a Concern

Foreign institutional flows also remain a source of caution. FIIs sold more than Rs 21,000 crore worth of Indian equities on Friday, marking a third straight session of outflows. Domestic institutional investors continued to provide support, buying shares worth Rs 16,764 crore and extending their buying streak to nine consecutive sessions.

Market Outlook

According to Ponmudi R, CEO of Enrich Money, markets are likely to remain highly sensitive to developments surrounding the U.S.-Iran negotiations and broader Middle East tensions. While crude prices remain below their recent peaks, the latest rebound reflects growing uncertainty over the final outcome of negotiations and the future of global energy supply routes.

Technical Analysis

On the technical front, Ponmudi said the Nifty faces immediate resistance in the 23,750-23,800 zone, while the broader 24,000-24,100 range remains a major hurdle. Support is seen around 23,500, followed by the broader 23,300-23,000 region. For Bank Nifty, resistance is placed at 54,600-54,800, while support lies in the 54,200-54,000 zone.