Gift Nifty Points to Firm Open for Sensex, Nifty on Thursday as Nvidia Verdict, Iran Talks Weigh

Mumbai, Aug 26: Gift Nifty futures point to a firm opening for Indian equity benchmarks when trading resumes on Thursday, August 27, even as investors digest Nvidia’s keenly awaited earnings and watch Iran-Oman talks over the Strait of Hormuz. The near-month Gift Nifty contract expiring September 29 was last placed at 24,396, up 188.25 points, or 0.78 per cent, against Wednesday’s Nifty 50 close of 24,207.75, while the far-month October 27 contract was sharply higher at 24,549.50, up 332 points, or 1.37 per cent. 

Gift Nifty Intraday Analysis 

The near-month Gift Nifty future opened at 24,512.5 and touched an intraday high of 24,568 in early trade, before slipping through the session to a low of 24,387.5. A partial recovery in the last hour lifted the contract off its lows, though it still settled 123.50 points, or 0.5 per cent, weaker on the day at 24,396. Support for Thursday is likely near the intraday low of 24,387.5, with resistance close to the day’s high of 24,568. 

Asian Markets 

Asian stocks stuttered on Wednesday as falling oil prices dragged bond yields lower on hopes the Strait of Hormuz could reopen, while investors braced for Nvidia’s earnings after the US close. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.12 per cent in early trading, while Japan’s Nikkei eased 0.4 per cent and the tech-heavy KOSPI dipped 0.2 per cent. Nasdaq futures fell 0.5 per cent, reflecting investor caution ahead of the Nvidia verdict. 

Oil Prices 

Brent crude extended its decline for a third straight session, falling around 2.6 per cent to near $86.20 a barrel, while US West Texas Intermediate slipped 2.5 per cent to $80.30, on hopes Iran and Oman could agree an interim shipping arrangement for the strait. The waterway, which handled about a fifth of the world’s traded oil before the six-month-old conflict, has seen shipping volumes collapse, and Iranian and Omani officials discussed a temporary joint maritime corridor. Even so, a tanker was struck by an unidentified projectile near Oman’s Ash Shishah close to the strait’s entrance, underlining that the security risk to shipping has not disappeared. 

Iran War 

The nearly six-month conflict between the US, Israel and Iran remained without a diplomatic resolution even as Tehran and Muscat pushed talks on managing strait traffic. Iranian Foreign Minister Abbas Araghchi and his Omani counterpart Badr Albusaidi discussed the proposed corridor, though Iran has said full reopening depends on Washington first lifting its naval blockade and sanctions. Tehran continues to face intensified economic pressure from President Donald Trump’s administration, which has widened sanctions targeting individuals, entities and vessels linked to Iran’s oil trade. With the security situation still fragile, markets are treating any progress in the Iran-Oman talks as provisional rather than a resolved risk. 

How Indian Markets Ended on Wednesday 

Indian equity benchmarks ended lower on Wednesday, giving up early gains as IT, FMCG and auto stocks weighed while investors awaited Nvidia’s earnings, US inflation data and clarity on West Asia. The Sensex fell 183.15 points, or 0.24 per cent, to close at 77,472.94, while the Nifty 50 declined 126.80 points, or 0.52 per cent, to settle at 24,207.75. The Nifty IT index was among the top laggards, down more than one per cent, while the Nifty Midcap index eased 0.1 per cent and the Nifty Smallcap index rose 0.81 per cent. 

Outlook 

With Gift Nifty pointing to a firm start despite its own intraday slide, Indian benchmarks look set to open higher on Thursday, tracking the roughly 0.78 per cent premium the near-month contract holds over Wednesday’s Nifty close. This prediction holds only if the current mix of macro and geopolitical conditions, including the tone of Nvidia’s earnings commentary, crude prices and the Iran-Oman talks, stays broadly unchanged until Thursday’s opening bell. Should any of these shift materially, whether a reversal in Nvidia’s guidance, a flare-up over the Strait of Hormuz, or a spike in crude, the prediction will not hold, and the Sensex and Nifty 50 could open on a very different note at 9:15 am. 

Source

• nseix.com
• Reuters