Nifty Eyes Higher Levels After Positive Global Cues and Crude Oil Retreat (Img: Internet)
New Delhi: After ending Thursday’s trade on a weak note, Indian equities are expected to open higher on Friday, supported by improved global sentiment, easing geopolitical concerns and a decline in crude oil prices.
The Nifty 50 settled at 23,161.60 in the previous session, losing 53 points amid heightened uncertainty surrounding developments in the Middle East. Investor sentiment remained subdued as rising crude prices and concerns over escalating tensions between the United States and Iran triggered profit booking across several sectors, including information technology and defence.
The mood across international markets improved considerably overnight following reports suggesting progress toward a diplomatic resolution between Washington and Tehran. The easing of geopolitical concerns sparked a strong rally on Wall Street, with technology shares leading gains.
Asian markets also traded in positive territory, reflecting renewed optimism among investors. The recovery in global equities is expected to provide support to domestic markets at the opening bell.
A key positive for Indian markets has been the sharp decline in Brent crude prices, which have fallen below the $90-per-barrel mark. The retreat in oil prices has eased concerns over inflationary pressures and potential economic disruptions, factors that had weighed heavily on market sentiment earlier.
Lower crude prices are particularly beneficial for India, a major oil importer, as they help reduce input costs and support macroeconomic stability.
Market participants will closely watch key technical levels as trading resumes. Analysts believe the broader trend remains constructive provided the Nifty sustains above the 23,300–23,350 zone.
A decisive breakout above 23,500 could strengthen bullish momentum and open the door for a move towards 23,700 and higher levels. On the downside, immediate support is placed near 23,100. Any sustained breach below this level may trigger fresh selling pressure and push the index towards the 22,900 mark.
Despite the improving outlook, investors are expected to remain cautious. Any adverse developments in ongoing geopolitical negotiations or a renewed rise in crude oil prices could revive volatility and limit market gains in the near term.
