Indian equity benchmarks opened on a positive note on Wednesday, supported by softer crude oil prices and improving sentiment across Asian markets. Investors, however, are expected to remain cautious ahead of Nvidia’s earnings and outlook, which could influence global technology stocks and broader risk appetite.
The BSE Sensex soared more than 200 points and opened trading near 77,900, while the NSE Nifty50 inched up to near 24,350, around 9:15 AM.
GIFT Nifty Signals To A Green Day Ahead
The GIFT Nifty, meanwhile, pointed to a stronger opening. The futures were quoted at 24,558, up 87 points, indicating that the Nifty50 could gain at the start of Wednesday’s session.
At around 9:04 AM, the Sensex was trading at 77,833.56, up 177.47 points or 0.23 per cent, while the Nifty stood at 24,333.80, down marginally by 2.20 points or 0.01 per cent.
Oil Prices Ease As Hormuz Shipping Hopes Improve
Crude oil prices extended their decline after falling around 2 per cent in the previous session.
The latest weakness followed news that Iran and Oman had discussed an “interim framework” aimed at resuming shipping through the Strait of Hormuz. The development offered some relief to markets concerned about prolonged disruption to energy supplies.
September crude futures were quoted at $85.43 per barrel, down 0.35 per cent, on the Intercontinental Exchange.
Any sustained easing in crude prices could remain supportive for Indian equities, given the implications for inflation and India’s import costs.
Asian Markets Gain Ahead Of Nvidia Earnings
Most Asia-Pacific markets traded higher on Wednesday, although investors remained selective ahead of Nvidia’s earnings and guidance, due later in the day.
Japan’s Nikkei 225 advanced, while South Korea’s Kospi and Hong Kong’s Hang Seng were up 0.02 per cent and 0.95 per cent, respectively.
Nvidia’s results are being closely watched given the company’s importance to the global artificial intelligence trade and its potential impact on technology stocks worldwide.
Wall Street Ends Higher
US markets closed higher overnight, with all three major benchmarks registering gains.
The Dow Jones Industrial Average rose 0.30 per cent, while the S&P 500 gained 0.32 per cent. The Nasdaq Composite advanced 0.66 per cent.
The positive close provided some support to global equities ahead of the Asian session, although investors remain alert to the potential market reaction to Nvidia’s results.
Gold And Silver Trade Higher
Precious metals also moved higher in early trade.
Gold futures gained 0.46 per cent, while silver futures climbed 1.13 per cent, indicating continued demand for precious metals amid uncertainty in global markets.
Market View: Nifty Faces Key Resistance Near 24,350-24,400
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the benchmark indices showed resilience during Tuesday’s August F&O expiry session after recovering sharply from their day’s lows.
Chouhan noted that the Nifty ended 115.50 points higher, while the Sensex gained 287 points, with buying emerging across most major sectors. Healthcare, Digital and Tourism stocks were among the strongest performers, each gaining more than 1 per cent.
From a technical perspective, he said the market found support around 24,100 for the Nifty and 77,100 for the Sensex, before recovering more than 200 points and 500 points, respectively, from the day’s lows.
“The promising recovery from lower levels and the bullish candle on the daily charts indicate a further uptrend,” Chouhan said.
For traders, he identified 24,350-24,400 on the Nifty and 77,800-79,000 on the Sensex as important resistance zones. A decisive move above these levels could open the way towards 24,500-24,700 for the Nifty and 79,300-79,900 for the Sensex, he added.
Markets On Tuesday
The domestic benchmarks recovered from early weakness on Tuesday, with the Nifty ending 115.50 points higher and the Sensex gaining 287 points.
The recovery was supported by buying across several major sectors, while healthcare, digital and tourism stocks outperformed.
Wednesday’s session is therefore likely to be shaped by the direction of global equities, crude oil prices, developments around the Strait of Hormuz and the market’s reaction to Nvidia’s earnings.
