Gift Nifty Points to Firm Open for Sensex, Nifty on Wednesday Amid Iran Sanctions Standoff

Mumbai, Aug 25: Gift Nifty futures point to a firm opening for Indian equity benchmarks when trading resumes on Wednesday, August 26, even as fallout from fresh US sanctions on Iran keeps sentiment on edge. The near-month Gift Nifty contract expiring August 25 was trading at 24,336, up 184.50 points, or 0.76 per cent, against Monday’s Nifty 50 close of 24,219.05, while the far-month September 29 contract climbed a sharper 1.06 per cent to 24,480. 

Gift Nifty Intraday Analysis 

The near-month Gift Nifty future opened at 24,152 and slipped to an intraday low of 24,134.5, then stayed range-bound through the morning and early afternoon. A sharp rally in the final stretch lifted the contract to an intraday high of 24,337, before it settled just below that level at 24,336, up 0.76 per cent, with fresh buying interest evident closer to the Indian market open. Support is likely near the session low of 24,134.5, with resistance close to the day’s high of 24,337. 

Iran War 

Iran vowed to retaliate against widened US sanctions targeting its economic lifeline, with Tehran expressing confidence that China and Russia would resist Washington’s pressure campaign. Treasury Secretary Scott Bessent’s measures targeted 60 individuals, entities and vessels across sectors including digital assets, gold, technology, aviation and shipping, though he stopped short of naming or penalising Chinese banks suspected of facilitating Iran’s oil trade. A spokesperson for Iran’s Revolutionary Guard warned of heavy retaliation against US interests and energy chokepoints, keeping the nearly six-month-old conflict without a diplomatic resolution in sight. 

How Indian Markets Ended on Tuesday 

Indian equity benchmarks ended higher on Tuesday, recovering from early losses in a volatile expiry session as buying in select IT, pharma and PSU banking stocks helped the Nifty reclaim the 24,300 mark. The gains came despite weak global cues, elevated crude oil prices and persistent concerns over tensions between the US and Iran. At the close, the Sensex rose 286.98 points, or 0.37%, to 77,656.09, while the Nifty gained 115.50 points, or 0.48%, to 24,334.55. Market breadth remained weak, however, with 1,993 shares advancing against 2,153 declines, while 156 stocks ended unchanged. 

Outlook 

With Gift Nifty pointing to a firm start, Indian benchmarks look set to open higher on Wednesday, breaking from the roughly 1.3 per cent decline of the past two weeks. This prediction holds only if the current mix of macro and geopolitical conditions stays unchanged between now and Wednesday’s opening bell; a fresh escalation in the Iran sanctions standoff or a sharp reversal in crude could quickly alter sentiment. Barring such a shock, the Sensex and Nifty 50 are likely to track the positive Gift Nifty cues at Wednesday’s 9:15 am open. 

Source

• nseix.com
• Reuters