The Indian stock market is expected to take a breather and open on a muted note Monday, following mixed cues from global markets. Easing geopolitical tensions in the Middle East and a sharp drop in crude oil prices may improve risk sentiment. The trends on Gift Nifty also signal a steady start for the frontline indices, Nifty 50 and Sensex today.
Gift Nifty was trading around 24,333 level, a discount of nearly 19 points from the Nifty futures’ previous close, indicating a muted start for the Indian stock market indices.
The US–Iran war concerns continue to recede, with diplomatic engagement progressing and no major disruptions reported. The easing of tensions has reduced concerns over energy supply risks in the Middle East, underpinning investor confidence across global markets.
Nifty 50 Outlook
On the domestic front, Nifty 50 continues to maintain a constructive technical structure, reflecting sustained buying interest and a positive underlying trend.
“From a technical perspective, the 24,400 region continues to act as the immediate resistance zone. A sustained breakout above this level would reinforce bullish momentum and could pave the way for an advance towards the 24,500 – 24,600 region,” said Ponmudi R, CEO of Enrich Money.
According to him, on the downside, the 24,200 level is expected to provide immediate support, followed by the 24,000 psychological mark, which remains a crucial support zone for Nifty 50. Momentum indicators also remain supportive, with the Relative Strength Index (RSI) hovering near the 61 mark, indicating strengthening bullish momentum while remaining comfortably below overbought territory.
“Overall, the near-term technical outlook remains positive, with a sustained move above the 24,400 resistance zone required to confirm the next leg of the ongoing recovery,” said Ponmudi R.
Meanwhile, global market cues remain mixed. Here’s a look at how global markets have performed:
Asian Markets
Asian stocks pared initial gains as technology stocks lost momentum, and the dollar strengthened. MSCI’s Asia Pacific Index was up 0.1%, after having climbed as much as 0.8% earlier.
Among Asian markets today, Japan’s Nikkei 225 slipped 1.18%, while the Topix rose 0.18%. South Korea’s Kospi declined 1.52%, reversing earlier gains of as much as 3%, while the Kosdaq dropped 1%. Chinese markets opened higher, with Hong Kong’s Hang Seng Index rising 0.4%, while the CSI 300 gained 0.2%.
Wall Street
US stock futures rose amid expectations of an upbeat earnings season and easing crude oil prices. Futures tied to Dow Jones Industrial Average rose 0.17%, S&P 500 futures gained 0.4%, and Nasdaq-100 futures rallied 0.98%. The US stock market was closed on Friday in observance of the US Independence Day holiday.
Last week, the Dow Jones rallied nearly 2%, while the S&P 500 and Nasdaq Composite surged 1.8% and 2.1%, respectively.
“US equities ended last week on a mixed note as optimism over a potentially less restrictive Federal Reserve policy, following weaker-than-expected labour market data, was partly offset by profit-taking in large-cap technology stocks,” said Ponmudi R.
European Markets
European equities climbed to fresh record highs last week, with the pan-European STOXX 600 and Germany’s DAX reaching new peaks as investors grew more optimistic about the region’s macroeconomic outlook.
“Sentiment was buoyed by softer-than-expected eurozone inflation data for June, reinforcing expectations that price pressures continue to ease and reducing concerns over additional monetary tightening,” said Ponmudi R.
Investor confidence was further supported by European Central Bank President Christine Lagarde’s remarks that the risks to eurozone inflation and economic growth are now more evenly balanced, signalling a less hawkish policy stance and strengthening expectations that interest rates may remain on hold in the near term, he added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
