Indian equity markets are signaling a cautiously positive start to the trading day, driven by promising global cues and strong domestic performance indicators. GIFT Nifty futures, traded on the NSE International Exchange, were up by 166.90 points, or 0.68 percent, reaching 24,619.50, suggesting an upbeat opening for the Sensex and Nifty indices.
Global Factors Fueling Optimism
Investor sentiment has improved significantly following indications from US President Donald Trump that negotiations with Iran are expected to resume. This development has revived hopes for a diplomatic resolution to recent Middle East tensions, leading to a dip in crude oil prices. Brent crude futures notably sank over 6 percent to $82.41 after the announcement.
On Wall Street, US stocks closed higher on Friday, with technology giants reporting strong quarterly earnings that bolstered confidence in AI-related stocks. The S&P 500 climbed 0.70 percent, the Nasdaq gained 1 percent, and the Dow Jones Industrial Average rose 0.53 percent. Asian markets, however, displayed a mixed performance in early trade, with KOSPI tumbling nearly 4 percent and Nikkei down 2 percent, while the Hang Seng edged higher.
Domestic Strengths and Key Watchpoints
Domestically, a robust Q1FY27 earnings season for Indian companies, coupled with healthy macroeconomic data, continues to underpin investor confidence. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that these factors support a positive bias for Indian equities.
Market participants are keenly awaiting the Reserve Bank of India's (RBI) monetary policy decision and India's Purchasing Managers' Index (PMI) data. These, along with crude oil price movements and evolving geopolitical tensions, will be crucial in shaping market direction. Ajit Mishra, SVP of Research at Religare Broking, emphasized the need for disciplined position sizing and prudent risk management amidst potential volatility arising from the US-Iran truce and crude oil prices.
FII-DII Activity and Rupee Performance
- Foreign Portfolio Investors (FPIs): Provisional data showed FPIs were net sellers on Friday, offloading domestic stocks worth Rs 277.48 crore. However, FPIs made a strong comeback in July 2026, pumping over Rs 20,200 crore into Indian equities, indicating improving overseas investor sentiment.
- Domestic Institutional Investors (DIIs): DIIs remained net buyers, acquiring Indian equities worth Rs 2,260.37 crore on Friday.
- Rupee: The Indian rupee closed at 95.38 on Friday, recording its biggest weekly gain since March.
- Gold: Gold prices continue to hold firm.
Technical Outlook for Nifty50 and Sensex
Analysts suggest a continued uptrend for Nifty50 and Sensex. Amol Athawale, VP of Technical Research at Kotak Securities, highlighted that Nifty has formed a long bullish candle on daily charts and is holding a higher high and higher low series. Key support zones for Nifty50 are around 24,130/77300 and 24,000/76900, with immediate resistance at 24,500-24,550. A breakout above 24,550 could push Nifty towards 24,700.
For Sensex, Sachin Gupta, VP of Technical Research at Choice Equity Broking, identified 77,800–77,600 as the immediate support zone. A sustained breakout above the 78,300–78,500 resistance could trigger a rally towards 78,800–79,000.
Nifty Bank Outlook
Nifty Bank is currently oscillating between its 20-day and 50-day Exponential Moving Averages (EMAs), indicating a lack of clear directional trend. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the Relative Strength Index (RSI) and Average Directional Index (ADX) are flat, suggesting subdued volatility. Immediate resistance for Nifty Bank is placed in the 57,500-57,600 zone, with support around 56,700-56,600. Pravesh Gour, Senior Technical Analyst at Swastika Investmart, also highlighted 57,400 as a key hurdle, with potential for an upmove towards 58,300 and 58,600 if breached.