Nifty Surpasses 24,200 as Oil Prices Ease and Global Markets Post Gains
Indian Benchmark Indices Set to Open Higher on Wednesday
Indian benchmark indices are expected to open higher on Wednesday, with GIFT Nifty trading above 24,200, indicating a firm gap-up start. The futures rose tracking easing crude oil prices and strong global cues amid hopes of a resumption in US-Iran talks.
GIFT Nifty was trading at 24,209 in early deals, up 80 points or 0.33 percent from the previous session, and over 331 points or 1.39 percent higher compared with Monday's close. This signals that the Nifty 50 could open today in the range of 24,100-24,200.
The positive setup comes after Indian markets were shut on Tuesday for Baba Saheb Ambedkar Jayanti, even as global sentiment improved sharply during the holiday. The easing of crude oil prices is a significant factor in this improvement, with Brent crude slipping below the $95 per barrel mark, easing concerns over inflation and input costs.
| Market Index | Monday's Close | Wednesday's Open |
|---|---|---|
| MSCI's Asia-Pacific Index | N/A | Up 1.5% |
| Japan's Nikkei | N/A | Up 1% |
| Hong Kong's Hang Seng | N/A | Up 1% |
| Nasdaq | N/A | Up 2% |
| S&P 500 | N/A | Up 1% |
Global equities reflected the improving sentiment, with Asian markets trading higher and Wall Street ending strongly overnight. The Nasdaq rose nearly 2 percent to extend its winning streak, and the S&P 500 advanced over 1 percent to hover near record highs.
The rebound in global risk appetite comes after a volatile start to the week, when Indian markets had declined sharply on Monday. The Sensex had fallen over 700 points, or 0.9 percent, to close at 76,848, while the Nifty slipped more than 200 points to 23,843, as crude prices surged above $100 following the breakdown of US-Iran talks.
Analysts said the reversal in oil prices and improving global cues could help Indian equities recover losses. However, the sustainability of the move will depend on further developments on the geopolitical front.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
From a technical perspective, the Nifty is seen approaching a key resistance zone in the 24,200-24,400 range, with sustained trading above this band required to extend gains toward higher levels. On the downside, the 24,000 mark is expected to act as an important support level.
Investor Takeaway
Investors should be cautious of the potential impact of oil prices on the market.
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