GIFT Nifty Signals Muted Start as Investors Balance Global Earnings Hopes Against Easing Crude and Domestic Market Rally

GIFT Nifty Signals Muted Start as Investors Balance Global Earnings Hopes Against Easing Crude and Domestic Market Rally​

GIFT Nifty is pointing towards a subdued opening for the benchmark indices, Sensex and Nifty, despite global cues remaining broadly positive. The preliminary readings suggest that investors are cautiously balancing the optimistic outlook driven by the upcoming global earnings season against stabilizing crude oil prices and recent domestic equity gains.

The GIFT Nifty was trading at 24,235 around 8 am, reflecting a slight downturn of 30 points or 0.12 percent from Friday's close. This forecast suggests that both the Sensex and Nifty could begin the session marginally lower, following their respective gains on Friday after posting three straight days of gains.

Market Recap: Benchmarks Close Strong as IT and Pharma Stocks Drive Rally​

Indian equity markets ended Friday on a high note, driven by broad-based buying across several sectors including information technology (IT), pharmaceuticals, metal, and realty stocks. The Sensex closed at 77,763.91, recording a gain of 261.79 points or 0.34 percent.

Concurrently, the Nifty finished at 24,270.85, improving by 95.15 points or 0.39 percent. This strong closing performance provided a solid base for the indices ahead of the upcoming global economic cycle.

Global Cues and Asian Markets Surge Amid Earnings Anticipation​

Asian markets showed resilience on Monday as investors focused intently on the impending start of the worldwide earnings season. Soft US labour market data continued to temper fears regarding imminent Federal Reserve rate hikes, lending stability to global sentiment.

MSCI's broadest index tracking Asia-Pacific shares outside Japan rose 0.4 percent. South Korea's Kospi specifically saw gains exceeding 2 percent, fueled by expectations of sharp profit growth from Samsung Electronics, driven by demand for AI-related memory chips. In contrast, Japan's Nikkei registered a marginal slip following last week's significant rallies.

US futures traded higher in the Asian session after the Independence Day holiday closure. S&P 500 futures gained 0.5 percent, while Nasdaq futures rose by 1.4 percent, reflecting optimism surrounding technology stocks and corporate earnings outlooks.

OPEC+ Decision Keeps Crude Oil Prices Under Pressure​

Crude oil prices edged lower following the decision by OPEC+ to raise production targets again starting from August, which heightened expectations of increasing global supply. Brent crude slipped approximately 0.6 percent, settling near $71.7 per barrel and nearing four-month lows.

US West Texas Intermediate crude was priced close to $68.4 per barrel. Further helping keep energy prices subdued were the recovery in shipments through the Strait of Hormuz and easing geopolitical tensions across the Middle East.

Technical Outlook: Resistance at 24,400 for Nifty​

Ponmudi R, CEO of Enrich Money, provided insights into the technical structure of the market. He noted that the Nifty maintains a constructive structure overall. The 24,400 level is cited as the immediate resistance zone. A decisive move above this level could clear a path toward the range of 24,500 to 24,600.

On the downside, the market retains support at 24,200, which acts as the first important support level. The psychological barrier of 24,000 also stands as an underlying support point.

Institutional Flows Show Mixed Signals in Previous Session​

Institutional investment flows registered mixed patterns during the previous trading session. Foreign institutional investors (FIIs) reversed a four-session selling streak and emerged as net buyers, injecting equities worth Rs 1,355 crore.

Conversely, domestic institutional investors (DIIs) snapped their eight-session buying trend, turning into net sellers and offloading shares valued at Rs 1,953 crore.