GIFT Nifty futures were trading at 24,143.50 as of 8:15 am, indicating a gap-up opening of nearly 1% compared to Friday’s close of 23,897.95.
Aakash Shah, Technical Research Analyst at Choice Equity Broking, said markets are likely to open on a positive note but may remain volatile.
“Equity markets are expected to open on a positive note, tracking firm cues from GIFT Nifty, which is currently trading around 24,140, up by nearly 185 points, indicating a gap-up start for domestic benchmark indices,” he said.
He added that despite the positive opening, the overall trend remains cautious.
The expected recovery comes after both Sensex and Nifty fell around 2.7% each over the last three sessions, pressured by rising oil prices linked to the Iran conflict and weak earnings outlook from IT majors such as Infosys and HCLTech.
OIL PRICES REMAIN ELEVATED
Crude oil prices continue to remain a key concern for markets. As of around 8:30 am, Brent crude was trading near $106–$107 per barrel, while WTI crude was around $95, reflecting sustained pressure due to stalled US–Iran peace talks and supply disruptions in the Middle East.
Higher oil prices raise concerns about inflation, input costs and overall economic growth, especially for an import-dependent country like India.
FII SELLING ADDS TO CAUTION
Foreign institutional investors (FIIs) have remained net sellers for five consecutive sessions. On Friday alone, FIIs sold equities worth Rs 8,827 crore, while domestic institutional investors (DIIs) bought shares worth Rs 4,700 crore, offering some support to the market.
This divergence reflects continued caution among global investors despite domestic buying at lower levels.
Investors will closely watch key stocks such as Reliance Industries and Axis Bank.
Reliance Industries missed its quarterly profit estimates, impacted by higher input costs and supply disruptions linked to the Iran conflict.
Axis Bank also reported a marginal decline in fourth-quarter profit due to lower treasury income and higher provisions.
Asian markets rose around 1.5%, led by gains in South Korean stocks, tracking a rally in US technology shares after strong earnings from Intel.
Markets will also keep an eye on upcoming results from global tech giants such as Amazon, Alphabet and Meta, which could influence sentiment in the technology sector.
“The Nifty 50 continues to trade with a negative to sideways bias in the short term. Immediate support is placed around 23,900–23,800 levels, while resistance is seen at 24,200. A sustained move above 24,200 is necessary to revive bullish momentum,” Shah said.
Markets are likely to see range-bound and volatile trade during the day.
While lower valuations after the recent correction may provide some support, rising oil prices, geopolitical tensions and continued FII selling are expected to keep investors cautious in the near term.
