Crude Oil Price Drop Fuels Positive Start for Indian Markets
Indian equity markets are expected to open on a cautiously positive note Monday, bolstered by easing Middle East tensions and a sharp decline in crude oil prices. The Brent crude futures price dropped over 6% to $82.41 after US President Donald Trump announced that talks with Iran would take place on Monday.
Trump stated that Iran and other Middle Eastern countries had requested time to finalize a deal that would result in the immediate reopening of the Strait and address Iran's nuclear threat. He emphasized that Tehran must 'rapidly make a DEAL.'
Rajesh Palviya, Head of Research at Axis Direct, noted that Asian markets opened on a softer note following Friday's semiconductor-driven rally, indicating a cautious start for regional equities.
Palviya also pointed out that the decline in oil prices is beneficial for India as it eases inflationary pressures, supports the rupee, and improves the macro outlook. He suggested that technically, the market maintains a positive bias as long as the Nifty sustains above 24,250 support zone.
Abhishek Kumar, SEBI RIA, observed that GIFT Nifty is trading around 24,600 (+0.5%), signaling a strong gap-up opening for the Nifty 50, building on Friday's robust close and broader global momentum. A bullish start is expected due to softer oil prices and strong global cues.
Devarsh Vakil, HSL Prime Research, stated that Indian indices are breaking out from near-term resistance levels after several months of consolidation. The Nifty index has closed above its 200 DEMA and swing-high resistance, reinforcing the near-term positive bias.