Gift Nifty Points to Weak Open for Sensex, Nifty on Thursday

Mumbai, Sept 2: Gift Nifty futures pointed to a weak opening for Indian equity benchmarks at 9:15 am on Thursday, September 3, after the Sensex and Nifty extended their losses on Wednesday amid the widening Iran-US conflict and firm crude prices. The near-month Gift Nifty contract expiring September 29 was last at 23,965.00, down 87 points, or 0.36 per cent on the day, while the far-month October 27 contract slipped a steeper 158 points, or 0.65 per cent, to 24,015.00. The sharper decline in the longer-dated contract points to persistent caution among traders heading into Thursday’s session. 

Gift Nifty Intraday Analysis 

The near-month Gift Nifty future opened at 24,026 and slid through the morning to an intraday low of 23,905, before staging a partial recovery around midday. The contract dipped again briefly in early afternoon, retesting levels near the day’s low, before rallying sharply to touch a high of 24,079 in later trade. It then gave up almost the entire advance to settle near 23,965, down 0.36 per cent on the day. The round-trip move points to choppy, two-way trade, with support near 23,905 and resistance near the day’s high of 24,079. 

Indian Markets on Wednesday 

Indian equity benchmarks ended lower on Wednesday, with selling pressure in auto and information technology stocks weighing on sentiment as Iran and the US continued trading attacks in the Middle East. The Sensex fell 373.93 points, or 0.49 per cent, to 76,570.35, while the Nifty declined 141.35 points, or 0.59 per cent, to 23,914.45. Market breadth remained weak, with 2,323 stocks declining against 1,827 advancing and 191 unchanged. Auto stocks were the biggest drag, led by Eicher Motors, Bajaj Auto and Mahindra & Mahindra, while the Nifty IT index fell 1.2 per cent, with Wipro among the top losers. Energy and Oil & Gas were the only sectors to close in the green, led by Coal India and Adani Ports, as elevated crude prices lifted the segment. 

Oil Prices 

Oil prices stayed firm on Wednesday, with WTI crude little changed at $90.25 a barrel, up 0.03 per cent, and Brent crude up 0.30 per cent at $94.93. Gulf-linked Murban crude rose a sharper 1.56 per cent to $107.81. Prices held near recent highs as markets continued to assess the risk of further supply disruption through the Strait of Hormuz. 

Iran War 

The United States launched a fresh wave of airstrikes on Iranian military targets on Tuesday, marking the most serious escalation of the six-month conflict in weeks, and Tehran retaliated with missile and drone attacks on US assets in Jordan, Bahrain and Iraq. The strikes followed a weekend exchange of fire and Monday’s attacks on two tankers leaving the Strait of Hormuz, which Iran has effectively closed to shipping. Iran’s Revolutionary Guard Corps said the strikes would only tighten its grip on the waterway, while President Donald Trump warned of a heavier strike should Tehran retaliate further. Iran’s Red Crescent reported five people killed and dozens wounded in a strike near Sirik, though there was no immediate US comment. 

Asian Markets 

Asian markets were mostly weaker on Wednesday as the region reacted to the overnight escalation between Washington and Tehran. Japan’s Nikkei 225 led the declines, sliding 2.85 per cent to 64,325.64, while Australia’s S&P ASX All Ordinaries fell 1.09 per cent and Thailand’s SET dropped 0.86 per cent. Hong Kong’s Hang Seng and China’s Shanghai Composite also eased, while Malaysia’s FTSE Bursa Malaysia KLCI was among the few gainers, up 0.48 per cent. 

Outlook 

With Gift Nifty giving up its late rally to end well below its intraday high, Indian benchmarks look set for a soft start when trading resumes at 9:15 am on Thursday. Elevated oil prices and the Iran-US conflict remain the key swing factors for the market, and the steeper fall in the far-month contract suggests investors are bracing for continued volatility. Traders will watch for further headlines from the Strait of Hormuz through Thursday’s session. 

Source

•  nseix.com
• Reuters
• OilPrice.com