Indian benchmark indices Sensex and Nifty 50 are expected to open on a positive note on Thursday, supported by short-covering after suffering their steepest single-day decline in more than two months during the previous session.
The rebound comes despite lingering concerns over the escalating conflict between the United States and Iran, rising crude oil prices and global geopolitical uncertainty.
Market Recap
On Wednesday:
- Sensex fell 1,677.12 points (2.15%) to 76,503.60
- Nifty 50 declined 516.65 points (2.12%) to 23,882.05
The sharp correction followed renewed geopolitical tensions after Donald Trump declared that the interim agreement with Iran was “over”, leading to concerns over energy supplies through the Strait of Hormuz.
Gift Nifty Signals Positive Opening
At around 8:16 AM, Gift Nifty traded near 23,976.5, indicating a positive opening for Indian equities with a premium of about 64 points over the previous Nifty futures close.
Key Global Triggers
US-Iran Conflict
Fresh US military strikes on Iran have heightened fears of further escalation in the Middle East, keeping investors cautious.
US Federal Reserve Minutes
Minutes from the latest Federal Reserve meeting showed that some policymakers believe higher interest rates may be required if inflationary pressures intensify due to geopolitical developments.
Crude Oil Prices
Oil prices remained elevated:
- Brent Crude: Around $78.8 per barrel
- WTI Crude: Around $74.2 per barrel
Higher crude prices remain a concern for India’s inflation outlook and trade deficit.
Gold Prices
Gold eased slightly after recent gains:
- Spot Gold: $4,066 per ounce
- US Gold Futures: $4,077 per ounce
Technical Outlook
Nifty 50
Analysts believe:
- Support: 23,650–23,800
- Resistance: 24,150–24,300
A recovery above 24,150 could improve short-term sentiment, while a break below 23,650 may trigger further weakness.
Bank Nifty
Key levels to watch:
- Immediate support: 56,500–56,600
- Resistance: 57,200
- Strong breakout level: 57,600
Intraday Stock Picks
Sumeet Bagadia
- FSN E-Commerce Ventures (Nykaa) – Buy at ₹318 | Target: ₹342 | Stop Loss: ₹307
- Jammu & Kashmir Bank – Buy at ₹166 | Target: ₹179 | Stop Loss: ₹160
Ganesh Dongre
- Oil and Natural Gas Corporation (ONGC) – Buy at ₹247 | Target: ₹256 | Stop Loss: ₹238
- Multi Commodity Exchange of India (MCX) – Buy at ₹2,742 | Target: ₹2,840 | Stop Loss: ₹2,680
- GAIL (India) – Buy at ₹169 | Target: ₹175 | Stop Loss: ₹164
Shiju Koothupalakkal
- Ather Energy – Buy at ₹1,200 | Target: ₹1,250 | Stop Loss: ₹1,172
- Anant Raj – Buy at ₹544.75 | Target: ₹574 | Stop Loss: ₹530
Outlook
While Gift Nifty points to a positive opening, market participants are expected to remain cautious as developments in the Middle East, crude oil prices and global central bank commentary continue to influence sentiment. Any further escalation in geopolitical tensions could keep volatility elevated in the near term.