Gift Nifty Points to Firm Open for Sensex, Nifty on Monday as Iran War Tensions Ease

Mumbai, Aug 28: Gift Nifty futures pointed to a firm opening for Indian equity benchmarks on Monday, August 31, after Friday’s session ended higher and easing Iran war tensions around the Strait of Hormuz kept sentiment supportive. The near-month Gift Nifty contract expiring September 29 was last at 24,328.00, up 16 points, or 0.07 per cent on the day, while the far-month October 27 contract was flat at 24,337.00, holding a premium over Friday’s Nifty 50 close of 24,175.65. 

Gift Nifty Intraday Analysis 

The near-month Gift Nifty future opened at 24,210.5, climbed to an intraday high of 24,364.5, slipped to a low of 24,204, and then recovered to settle near 24,328 in a choppy, range-bound session. Holding above 24,200 through repeated dips suggests demand on declines, with resistance near 24,364.5 and support close to 24,200. 

Oil Prices 

Oil prices were mixed, with WTI crude at $83.08 a barrel, down 0.54 per cent, and Brent crude at $89.59, down a modest 0.12 per cent, while Murban crude bucked the trend to rise 1.09 per cent to $94.04. The divergence came as mediators pressed ahead on reopening the Strait of Hormuz, a corridor that once carried a fifth of world oil supply, with US Central Command saying shipping lanes through it were now open. For India, a major crude importer, broadly steady prices offer limited relief but no fresh inflationary pressure. 

Iran War Diplomacy 

Mediation on the Iran war shifted further toward restoring normal shipping through the Strait of Hormuz, with Tehran agreeing to draft a list of conditions after Qatar’s prime minister pressed Iranian leaders to respect freedom of navigation. Iran’s Supreme National Security Council said the country had reached an understanding with Oman on a shipping corridor split between the two nations’ waters, though details were still being finalised. The US has largely stepped back from direct talks in favour of an economic pressure campaign, leaving Qatar and Oman to carry the diplomacy forward. US military commanders said American forces had cleared sea mines laid by Iran’s Revolutionary Guards and helped roughly 1,500 vessels carrying nearly 750 million barrels of crude transit the strait, even as ship-tracking data showed traffic still running well below pre-war levels. 

Global Cues 

Wall Street rallied overnight, with the Nasdaq Composite up 1.57 per cent at 26,541.35 and the S&P 500 adding 0.72 per cent, while Asian markets were mixed on Friday, with Japan’s Nikkei 225 up 0.41 per cent and Hong Kong’s Hang Seng little changed even as Shanghai’s Composite slipped 0.11 per cent. 

How Indian Markets Ended on Friday 

Indian benchmarks ended higher on Friday, with the Sensex settling 330.92 points, or 0.43 per cent, up at 77,264.51, while the Nifty 50 advanced 84.80 points, or 0.35 per cent, to 24,175.65. IT, realty and auto stocks led the gains, with the Nifty IT index jumping 3 per cent to emerge as the top sectoral performer as all 10 of its constituents traded higher and dominated the list of top Nifty 50 gainers. The Nifty Smallcap 100 and Nifty Midcap 100 indices each added 0.2 per cent, reflecting a broadly positive session across market capitalisations. 

Outlook 

With Gift Nifty holding a firm premium over Friday’s Nifty close, Indian benchmarks look set for a positive start when trading resumes at 9:15 am on Monday. Easing tension around the Strait of Hormuz and steady oil prices offer a supportive backdrop, though progress in the Iran-Qatar-Oman talks and any weekend developments remain key swing factors. Traders are likely to track IT stocks closely after Friday’s outperformance for further cues once the session opens. 

Source

•  nseix.com
• Reuters
• OilPrice.com