Nifty Reclaims 24,000 as Falling Crude Oil Lifts Sentiment
The Indian stock market opened on a positive note on Thursday, with the Sensex gaining over 220 points in early trade, as crude oil prices continued to ease. The benchmark Nifty 50 also rose, reclaiming the psychologically important 24,000 level after a strong rebound in the previous session.
On Wednesday, the Nifty snapped a two-day losing streak, closing 140.85 points (0.59%) higher at 24,005.85. The recovery was driven by broad-based buying in FMCG, auto, and realty stocks, with automobile shares performing well after robust June sales data reinforced optimism about domestic demand.
Global cues remain mixed. While the Dow Jones hovered near record highs, the S&P 500 slipped 0.22% and the Nasdaq declined 0.66% as investors booked profits in semiconductor stocks after a strong first-half rally. Asian markets mirrored the cautious sentiment, opening lower amid weakness in technology shares.
Crude oil prices remain a key factor for Indian equities. Brent crude was trading near $71 per barrel, after recording its steepest quarterly decline since 2020. The decline is attributed to easing geopolitical tensions and expectations of ample global supply. Softer crude prices help reduce inflationary pressures, support the rupee, and improve India's macroeconomic outlook.
GIFT Nifty indicated a firm start for domestic equities, pointing to an opening gain of around 150 points. However, investors are likely to remain selective as they assess global risk sentiment and upcoming macroeconomic data.
From a technical perspective, the 24,000 level has emerged as an immediate support for the Nifty. Sustaining above this mark could strengthen the ongoing recovery and pave the way towards 24,200. On the downside, a decisive breach below 23,800 could trigger renewed selling pressure, with the next support around 23,600.
