GIFT Nifty Rockets Amid Oil Plunge and Iran Dialogue Gains Traction, Signaling Strong Rally for Indian Markets

GIFT Nifty Rockets Amid Oil Plunge and Iran Dialogue Gains Traction, Signaling Strong Rally for Indian Markets​

Indian benchmark indices snapped a two-day losing streak on Thursday, closing with strong gains as broad-based buying supported the market rally. The Sensex climbed 444 points, finishing at 76,923, while the Nifty gained 140 points to settle at 24,006.

The early momentum remains robust, with GIFT Nifty trading at 24,193 around 8 am. This represents a sharp jump of 149 points or 0.62 percent from the previous session close, suggesting a firm opening for the benchmark indices.

Global Tech Drag Continues as Asian Markets Face Headwinds​

Global markets presented a mixed picture overnight, largely influenced by renewed selling in semiconductor stocks. The Nasdaq Composite declined 0.66 percent, and the S&P 500 fell 0.22 percent, while the Dow Jones Industrial Average slipped marginally lower by 0.03 percent.

Technology stocks globally remained under pressure, driven by concerns over lofty valuations and heavy capital investment in artificial intelligence infrastructure. The Philadelphia Semiconductor Index tumbled steeply, falling 6.3 percent.

Across Asia, sentiment was cautious. While Japan's Topix gained about 1 percent and Hong Kong’s Hang Seng rose 1.7 percent, the broader MSCI Asia Pacific Index slipped 0.3 percent. South Korea experienced volatility as Samsung Electronics and SK Hynix fell around 5 percent each after a nearly 7 percent dip in Kospi.

Oil Prices Plunge on Progress in US-Iran Talks​

The rise in sentiment from geopolitical stability helped cushion the market, with oil prices extending their recent decline. Qatar reported that indirect talks between the United States and Iran had made "positive progress."

Brent crude fell as much as 1.3 percent to approximately $70.7 per barrel. This level marks its lowest point since before the Middle East conflict commenced. US West Texas Intermediate crude also slipped, settling at around $67.7 per barrel.

Expert Viewpoints and Technical Outlook for Nifty​

Despite the positive indications from GIFT Nifty, experts caution that Indian equities may trade with a watchful undertone due to global tech weakness and heightened volatility across Asian markets.

A technical analysis of the Nifty noted its successful reclamation of the 24,000 mark. The index continues to face immediate resistance in the 24,100-24,200 zone; a sustained breakout above this band could pave the way for a move towards 24,400. Key support is currently identified in the 23,900-23,785 region.

For Bank Nifty, the structure remains positive, though the index needs to decisively reclaim the 58,000 level. Immediate resistance is seen at 58,200-58,300, with support established in the 57,500-57,440 region.

Institutional Flows Remain Mixed as DII Provides Support​

Institutional flows witnessed a mixed scenario during the previous trading session. Foreign institutional investors (FII) continued their selling streak for a third straight session, offloading equities worth Rs 1,140 crore on July 1.

In contrast, Domestic institutional investors (DII) provided solid support to the market, purchasing shares valued at Rs 3,159 crore. This marks seven consecutive sessions of continuous buying from DIIs.