Gift Nifty Points to Cautious, Weaker Open for Sensex, Nifty on Friday as Late Slide Weighs

Mumbai, Aug 27: Gift Nifty futures pointed to a cautious, slightly weaker opening for Indian equity benchmarks on Friday, August 28, after Thursday’s session for Indian markets ended lower and easing oil prices offered only partial relief. The near-month Gift Nifty contract expiring September 29 was last at 24,200.00, down 158.50 points, or 0.65 per cent on the day, while the far-month October 27 contract fell more sharply, down 370.50 points, or 1.49 per cent, to 24,424.50. 

Gift Nifty Intraday Analysis 

The near-month Gift Nifty future opened at 24,200.5 and climbed to an intraday high of 24,406.5 in early trade, before sliding through the rest of the session to a low of 24,200, where it remained at the time of writing. The contract’s slide from the day’s high to its low, without any late recovery, points to persistent selling pressure through the session rather than a one-off dip. Support for Friday is likely near the intraday low of 24,200, with resistance close to the day’s high of 24,406.5. 

Oil Prices 

Oil prices also extended their recent decline, with Brent crude falling to around $87.4 a barrel, offering some relief to India, one of the world’s largest crude importers. Softer oil prices can help ease inflationary pressures and improve India’s external balance. However, concerns around US inflation and the Federal Reserve’s interest-rate outlook continued to keep investors cautious. The market is also watching developments in the Middle East, particularly diplomatic efforts involving Iran and the potential impact on crude supplies. 

How Indian Markets Ended on Thursday 

Indian benchmarks extended losses to a second straight session on Thursday, with the Sensex falling 539.35 points, or 0.70 per cent, to 76,933.59 and the Nifty 50 down 116.90 points, or 0.48 per cent, at 24,090.85, as metal, PSU Bank and cement shares weighed on sentiment. Kotak Mahindra Bank, ICICI Bank, Tech Mahindra and Bharat Electronics were the top gainers in the Sensex pack, while HDFC Bank, NTPC, Mahindra & Mahindra and Bharti Airtel were among the major laggards. The Nifty Midcap and Nifty Smallcap indices also ended lower, down 0.1 per cent and 0.13 per cent respectively, reflecting the broad-based nature of Thursday’s decline. 

Outlook 

With Gift Nifty’s near-month contract sliding to its intraday low into the close and holding little premium over Thursday’s Nifty settlement, Indian benchmarks look set for a subdued start on Friday rather than a decisive move in either direction. Softer crude prices remain a modest tailwind, but that support is being offset by caution around the Fed’s rate trajectory following recent US inflation data, along with continued watchfulness over the Iran-Oman talks and their bearing on Strait of Hormuz shipping. Traders are likely to stay light on directional bets until there is more clarity on these fronts once trading resumes at 9:15 am. 

Source

• nseix.com
• Reuters