Gift Nifty Suggests Mildly Positive Open for Markets on Thursday  

Mumbai, Aug 5: Gift Nifty futures suggest Indian equity benchmarks will open mildly positive on Thursday. The Nifty 50 and Sensex will likely open at 9: 15 am cautiously with weak positive bias in early trades. Nifty’s near-month August 25 contract was trading 31.50 points or 0.13% higher at 24,666 while September 29 contract was up flat at 24,709 in the latest trading session.  

Gift Nifty Intraday Analysis  

Gift Nifty today opened at 24,740.5 and jumped to an intraday high of 24,798 before coming under heavy selling pressure. Prices fell to a low of 24,562 before recovering some lost ground. Gift Nifty was trading at 24,666 in the latest trade.  

Buying into weakness and bounce from 24,562 low suggests strong support at 24,562. The next support is placed at 24,509. On the higher side, 24,740-24,798 forms the immediate resistive zone. With support holding above 24,650 during late American trading session and Wednesday’s high, the Indian equity indices will likely open with mild-to-positive bias on Thursday.  

RBI Rate Decision  

Reserve Bank of India kept benchmark lending rate or repo rate unchanged at 5.25%. All the six members of Monetary Policy Committee voted in favour of status quo in June monetary policy. The RBI also retained the “neutral” stance on policy action for now. Going forward, RBI hinted that future policy actions will continue to be data-driven.  

The RBI revised upward GDP growth projection for FY27 to 6.7% while cutting inflation projection by 5%. The central bank exuded confidence that resilient domestic demand conditions will continue while warning that external developments and elevated energy prices pose risk to growth.  

The above outcome could help domestic equity markets move higher today with muted reaction to neutral stance while investors continue to grapple with uncertainties around inflation and crude oil prices.  

Iran War Live Updates  

Iran- US war concerns continue to dominate global markets. Investors are watching geopolitical developments closely especially any signs of diplomacy and escalation around Strait of Hormuz.  

A military build-up in the region could heighten concerns about disruptions to energy supplies and impact key shipping routes. Such outcome will also push crude oil higher.  

On the other hand, markets will react positively to some signs of de-escalation from both Iran and US which could reduce geopolitical risk premium in oil prices.  

Iran-US war situation will continue to be watched closely by Indian equity markets as rising crude oil will only add to import bill, put downside pressure on rupee and worsen inflation outlook for India.  

Sources

•  nseix.com
• Reuters
• PTI
• nseindia.com
• bseindia.com