Nifty Signals Strong Start, Sensex and Nifty Poised for Rebound Amid Global Cues

Indian Equity Markets Poised for a Strong Start Despite Lingering Concerns

The Indian equity markets are expected to open on a positive note on Monday, following a sharp three-day decline last week. As of the morning session, the GIFT Nifty was trading at 24,140, up 186 points or 0.77 percent, indicating a firm start for benchmark indices Sensex and Nifty. This positive signal comes despite ongoing geopolitical concerns and elevated crude oil prices, as global cues remain supportive.

Global Markets Trading Higher

Asian markets were largely trading higher in early trade, with Japan's Nikkei and South Korea's Kospi hitting record highs, tracking gains on Wall Street. The US markets ended mixed on Friday, with the S&P 500 and Nasdaq closing at record highs. The sentiment was supported by optimism around potential US-Iran negotiations, even amid stalled talks, and strength in technology stocks, particularly semiconductors.

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Rising Crude Oil Prices Remain a Concern

However, the upside for domestic markets may remain capped by rising crude oil prices. Brent crude climbed over 2 percent to near $108 per barrel amid stalled US-Iran peace talks and continued disruption in Middle East energy flows. Elevated oil prices remain a key concern for India, given their implications for inflation and macro stability.

Domestic Sentiment Remains Cautious

Back home, sentiment remains cautious following Friday's sharp sell-off, when the Sensex and Nifty fell over 1 percent each, dragged by broad-based weakness led by IT stocks. Foreign institutional investors (FIIs) have also remained consistent sellers, offloading equities worth Rs 8,827 crore in the previous session, marking their fifth straight day of outflows. However, domestic institutional investors (DIIs) have provided some support through continued buying.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Market Expectations

Analysts expect markets to remain volatile and largely news-driven, with geopolitical developments, crude oil movements, and institutional flows likely to dictate near-term direction. The ongoing Q4 earnings season is also expected to drive stock-specific action.

Technical Analysis

From a technical perspective, the Nifty continues to hover near the crucial 23,800-23,900 zone, with immediate resistance seen at 24,300-24,400, said analysts. A sustained move above this range will be key to easing selling pressure, while a breach below support levels could trigger further downside.

Comparison of Key Indices