Indian stock markets rallied sharply on Monday, supported by strong gains across Asian markets and a steep decline in global crude oil prices following reports of progress in negotiations between the United States and Iran.
The decline in oil prices came after reports suggested that Iran had agreed in principle to reopen the Strait of Hormuz and dispose of its stockpile of highly enriched uranium under a developing agreement with the United States.
The BSE Sensex surged 826.09 points, or 1.10 per cent, to 76,241.44 in early trade, while the Nifty 50 rose 239.90 points, or 1.01 per cent, to 23,959.20.
Market experts said the strong opening reflected improving global sentiment and optimism in domestic equities.
Asian markets also traded firmly in positive territory. Japan’s Nikkei 225 led the rally, surging more than 3 per cent, while Taiwan’s Weighted Index gained nearly 2.9 per cent.
Other regional indices, including Hong Kong’s Hang Seng Index, China’s Shanghai Composite, Thailand’s SET Composite and Singapore’s Straits Times Index, also traded higher.
South Korea’s KOSPI remained largely flat, while Indonesia’s Jakarta Composite was marginally lower.
The GIFT Nifty also signalled a strong start for Indian equities, trading 292.50 points, or 1.23 per cent, higher at 23,983.50.
Meanwhile, global crude oil prices witnessed a sharp decline. Brent crude fell more than 5.4 per cent to USD 97.91 per barrel, while US crude dropped 5.7 per cent to USD 91.09 per barrel. Gold prices, however, edged higher by 0.92 per cent.
Rajesh Palviya said commodity prices remained elevated, with Brent crude trading just below USD 100 per barrel, while precious metals continued to trade firmly, indicating caution in global markets.
He added that the market outlook remained positive and a sustained move above 23,850 on the Nifty could trigger fresh momentum towards the 24,000-24,200 range.
Shrikant Chouhan said the 50-day simple moving average, or the 23,600/75,100 zone, would act as immediate support for positional traders.
“As long as the market remains above this level, positive sentiment is likely to continue,” he said.
Chouhan added that a breakout above 23,850 on the Nifty could push the index towards the 24,000-24,200 range.
However, he cautioned that sentiment could weaken if the market slips below the 23,600 mark. “Below this level, the index could retest the 23,400-23,300 levels,” he said.
On the banking front, Chouhan said the Nifty Bank has shown signs of recovery after a prolonged correction.
He said support zones for traders are around 53,500 and 53,000, while a pullback rally could continue towards 54,500 and possibly 55,000 if the index remains above those levels.
He also warned that a fall below 53,000 could weaken sentiment in banking stocks.
— ANI
