- Indian equities opened flat amid US-Iran Strait uncertainty.
- Asian markets gained; oil prices rose on Hormuz developments.
- Gold, silver declined; Nifty faces 24,800 resistance level.
Indian equity benchmarks witnessed a muted start on Monday as investors weighed uncertainty over a possible agreement between the United States and Iran to reopen the Strait of Hormuz, even as Asian markets tracked gains on Wall Street.
The BSE Sensex climbed merely 60 points and started the session above 78,550, while the NSE Nifty50 stood almost under 24,600, inching up about 14 points, around 9:16 AM.
GIFT Nifty Signals Flat Opening
The GIFT Nifty pointed to a largely steady opening for domestic equities. The futures were quoted at 24,655, indicating little movement from the previous session.
At around 9:05 AM, the Sensex was trading at 78,571.31, up 72.14 points, or 0.09 per cent, while the Nifty stood at 24,575, higher by 4.15 points, or 0.02 per cent.
Investors are likely to remain focused on developments around the Strait of Hormuz, particularly as uncertainty persists over a potential agreement between Washington and Tehran.
Asian Markets Rise, Track Wall Street Gains
Most Asian markets traded higher in early deals on Monday, following gains across US equities in the previous week.
Japan’s Nikkei 225 advanced 1.46 per cent, while South Korea’s Kospi gained 0.65 per cent.
On Friday, the Dow Jones Industrial Average closed 0.28 per cent higher, while the S&P 500 gained 0.62 per cent. The Nasdaq Composite ended the session 1.30 per cent higher.
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Oil Prices Rise Amid Hormuz Uncertainty
Crude oil prices moved higher as investors assessed the possibility of an agreement between the US and Iran over the strategically important waterway.
Iran said it was in the final stages of concluding a deal with Oman to manage the Strait of Hormuz. However, the waterway would only be reopened if the US fulfils additional conditions, keeping uncertainty around energy supplies intact.
The August crude futures were quoted at $84.75 per barrel, up 1.44 per cent.
Gold, Silver Trade Lower
Precious metals moved lower in early trade.
Gold futures declined 0.53 per cent, while silver futures were down 0.19 per cent.
What To Expect In Indian Markets Today
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, Indian benchmark indices remained range-bound last week, although both the Nifty and Sensex ended higher.
The Nifty gained 0.77 per cent, while the Sensex rose around 400 points during the week. Among sectors, PSU Banks and Defence outperformed, gaining around 5 per cent and 4 per cent, respectively. The Media index was the biggest laggard, declining 4 per cent.
Chouhan noted that the market began the week with a gap-up opening but subsequently witnessed profit booking at higher levels.
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Nifty Faces Key Resistance At 24,800
From a technical perspective, Chouhan said the Nifty formed a Doji candlestick pattern on the weekly chart, indicating uncertainty between buyers and sellers. The index has also remained range-bound on intraday charts.
He said the short-term outlook remains positive, but a fresh upward move would require the Nifty to decisively cross the 24,800 level, with the corresponding Sensex level at 79,400.
A sustained move above these levels could take the Nifty towards 25,000 and the Sensex towards 80,200, according to Chouhan.
