GIFT Nifty Signals Cautious Gains as Wall Street Surges Amid US-Iran Tensions and Diplomatic Hopes

GIFT Nifty Signals Cautious Gains as Wall Street Surges Amid US-Iran Tensions and Diplomatic Hopes​

GIFT Nifty offered a mildly positive outlook for Indian equity markets on Tuesday, suggesting potential gains despite geopolitical uncertainty. The indicators tracked overnight momentum from a strong rally in the US and relatively stable movement across Asian exchanges.

The GIFT Nifty was trading at 24,004 around 8 am, indicating an uptick of 46 points or 0.19 percent. This reading suggests that both the Sensex and Nifty could open higher after they closed Monday’s session with losses.

Indian Market Close Reflects Profit Booking Pressure​

Indian equities saw a cooling in sentiment as the indices snapped their two-day gaining streak on Monday. Broad-based profit booking weighed heavily on market performance across sectors.

The Sensex declined by 372.10 points, closing at 76,728.37, recording a fall of 0.48 percent. Similarly, the Nifty fell 109.75 points to close at 23,946.25, marking a decline of 0.46 percent.

Selling pressure intensified during the afternoon session, primarily affecting banking, oil & gas, auto, and IT stocks. The underlying weakness in the broader market contributed significantly to this downturn across major indices.

US Markets Rally as Technology Stocks rebound on AI Strength​

In contrast to domestic volatility, US markets staged a strong recovery overnight, driven largely by technology sector shares. Investors moved back into beaten-down AI-related stocks following last week’s sharp selloff in tech.

The Dow Jones Industrial Average rose 0.59 percent and hit a record closing high. The S&P 500 advanced by 1.18 percent, while the Nasdaq Composite saw a robust rise of 2.07 percent. Technology stocks outperformed significantly after previous valuation-driven weakness.

Global Sentiment and Crude Oil Decline Awaiting Diplomatic Talks​

Asian markets remained mixed on Tuesday as early momentum faded away across the region. The Hang Seng dropped 0.5 percent, while Shanghai stocks slipped by 0.4 percent. South Korean technology shares also retreated following a strong quarterly rally.

Oil prices edged lower as the market awaits further clarity from the proposed US-Iran negotiations. Brent crude fell nearly 1 percent, trading near $72.4 per barrel. US West Texas Intermediate (WTI) was monitored around $70.3 per barrel.

Technical Outlook and Market Flows Assessment​

Ponmudi R, CEO of Enrich Money, stated that Indian equities are likely to maintain a cautious bias as investors closely monitor developments related to the US-Iran talks. He cautioned that any disruption through the Strait of Hormuz could swiftly revive inflation concerns and global risk aversion.

From a technical standpoint, Ponmudi noted that the Nifty faces immediate resistance in the 24,100-24,200 zone, with 23,900 remaining the primary support level. For Bank Nifty, the key hurdle remains the 58,200-58,300 region, while 57,600-57,500 is expected to provide immediate support.

Institutional Activity and International Flows​

Institutional flows registered mixed results in the preceding trading session on June 29. Foreign institutional investors sold Indian equities worth Rs 1,350 crore. Conversely, domestic institutional investors maintained their buying streak for a fifth consecutive session with net purchases totaling Rs 2,800 crore.