Indian equity markets open in green on lower crude prices, favourable global cues

New Delhi [India], June 22 (ANI): Indian equity markets opened in positive territory on Monday, supported by stable global indicators and a notable decline in international crude oil prices.
The BSE SENSEX stood at 77,160.67 points, up by 357.77 points or 0.47 per cent. Meanwhile, the NSE NIFTY 50 reached 24,106.60 points, gaining 93.50 points or 0.39 per cent during the early trade.
Rajesh Palviya, Head of Research at Axis Direct, stated that global cues remain supportive at the start of the week. He noted that while US markets were closed on Friday, Thursday's strong technology-led rally continued to provide a positive undertone for global equities.
"Domestically, GIFT Nifty indicates a positive start, suggesting that Friday's decline may largely remain a healthy corrective move within the broader recovery trend. Asian markets are trading mixed, with strength in Japan and South Korea offset by softer Chinese equities," Palviya said.
The GIFT NIFTY traded up at 24,136.50 points and Japan's Nikkei 225 gained significantly to reach 72,935.00 points, while Hong Kong's Hang Seng index contract fell to 23,724.00 points.
"Meanwhile, Brent crude has stabilised near the USD 80 per barrel mark after last week's sharp correction, offering relief for India's inflation and fiscal outlook, although geopolitical developments in the Middle East remain a key monitorable," he added.
At the time of filing, Brent crude prices softened to USD 79.55 per barrel and crude oil dropped to USD 75.83, while gold traded higher at USD 4,176.09.
Palviya further pointed out that the 24,000 level continues to be a crucial support zone for the benchmark Nifty index.
"Sustaining above this level is likely to keep the positive bias intact, with immediate resistance placed at 24,150-24,200," Palviya stated. "A decisive breakout above this zone could trigger fresh buying interest and short covering, paving the way towards 24,300-24,400."
Domestic factors, including a strengthening rupee and the stabilizing flow of foreign portfolio investments, also provided structural support to the indices.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, observed that despite the confusing news coming from the West Asia talks, Brent crude is trading below USD 80.
"This market signal indicates that a further flare-up in the conflict is unlikely," Vijayakumar said. "However, the situation remains fluid and has to be watched closely."
He mentioned that in the meantime, Rupee appreciation and tapering of FPI outflows continue with the potential to impart resilience to the market. "The FPI buy figure of Rs 4,859 crore on Friday is due to the FTSE rejig and, therefore, is not indicative of any trend."
He added that the domestic currency's appreciation from its previous lows to 94.32 against the US dollar is a positive trend that is likely to continue due to capital inflows.
"The market momentum is now in the mid and small caps assisted by superior earnings growth potential. Bank Nifty is fundamentally strong and deserves calibrated accumulation," Vijayakumar added.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted that the technical parameters indicate a continuation of the upward trajectory for the indices.
"We are of the view that the short-term market outlook remains positive, and a strategy of buying on dips and selling on rallies would be ideal for traders," Chouhan said. "In the near term, for Nifty, 23,900 and 23,800 would be major support levels. The Sensex levels would be 76,500 and 76,200."
Chouhan mentioned that if the index falls below these support marks, the current uptrend could become vulnerable, prompting traders to consider strategic defensive positions. (ANI)

(This article was generated from news agency ANI without modifications to the text.)