Indian markets continue to trade in green following strong global cues; Brent Crude at USD 82/bbl

NEW DELHI: Indian equity markets opened in the green on Tuesday, tracking strong performance across global peers and selective overnight gains in US markets. The BSE Sensex stood at 76,526.77 points, up by 262.44 points, or 0.34 per cent, while the NSE Nifty 50 gained 70.00 points or 0.29 per cent to trade at 23,923.90 points in early trade.

The initial surge reflects an accumulation of positive domestic sentiment alongside a distinct shift in foreign institutional investor flows. Ajay Bagga, Banking and Market expert observed that domestic conditions remain supported by structural changes in foreign capital deployment.

“Indian markets are showing a positive bias with FII flows turning positive for the last two trading days. If this trend holds, a big overhang will be removed from the Indian markets,” Bagga said.

Analysing the broader international landscape, Bagga said, “Asian markets are soft this morning as markets mull the contours of the Iran-US deal, the time to recovery of normal tanker traffic from the Gulf and of crude oil prices to stabilise at below USD 70/bbl.”

Among regional Asian indices, the GIFT Nifty traded marginally higher at 23,941.50 points, up 0.05 per cent, indicating a stable opening pattern. Other markets presented mixed openings, with Japan’s Nikkei 225 surging 0.98 per cent to reach the 70,000.00 mark and South Korea’s KOSPI advancing 2.40 per cent. Conversely, Hong Kong’s Hang Seng index shed 1.14 per cent.

In the commodities segment, crude prices eased slightly, with Brent Crude being down 0.31 per cent to USD 82.91 per barrel, and Crude Oil touched USD 80.62 per barrel (-0.17%) while gold futures edged up 0.41 per cent to USD 4,327.19.

“US markets saw the Dow making a record high while the Nasdaq jumped more than 3% on the back of the Iran relief and SpaceX signalling AI/Big Tech momentum is still surging in the markets. Expect continued volatility going into the formal signing of the US-Iran agreement on June 19th and beyond,” Bagga added.

At the time of filing this report, the Dow Jones futures stood at 51,727.40, marking a slight increase of 56.37 points or a 0.11 per cent gain. Meanwhile, the S&P 500 showed stronger upward momentum, trading at 7,554.29 points with a notable increase of 122.83 points. Leading the gains is the Nasdaq, which sits at 26,683.94 points, surging by 795.10 points for a significant 3.07 per cent jump.

From a technical perspective, the domestic indices maintain a definitive structure that keeps the immediate trend constructive for equity participants. Shrikant Chouhan, Head of Equity Research at Kotak Securities, said, “We are of the view that for Nifty, the 50-day SMA (Simple Moving Average) at 23,750 and 23,550, For Sensex 76000 and 75700 would act as crucial support zones for the market. As long as the market is trading above these levels, the bullish trend is likely to continue.”

Chouhan added that on the higher side, 24,000/76,800 and 24,100/77,000 remain key resistance levels for the bulls. “However, if the market falls below 23,550/75700, sentiment could change,” Chouhan said, noting that below this level, traders may prefer to exit their long positions. (ANI)