Indian equity markets extended their rally in line with global peers as investors welcomed a formal framework for a US–Iran ceasefire agreement and plans to reopen the Strait of Hormuz. Nifty ended the session on a positive note, although gains remained capped as the index traded within a relatively narrow range for most of the day. Technically, analysts say the 24,000 mark remains an important immediate resistance area. A sustained breakout above this range could strengthen bullish momentum and pave the way for a move towards the 24,200–24,400 region.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a muted start
GIFT Nifty on the NSE IX traded higher by 4.50 points, or 0.02 per cent, at 23,935, signaling that Dalal Street was headed for a muted start on Tuesday.
Tech View: On the higher side, the Nifty may move towards 24,000–24,200 in the coming sessions. On the other hand, a breach below 23,800 could trigger a phase of near-term consolidation and limit the immediate upside momentum
India VIX: India VIX, which is a measure of the fear in the markets, fell 2.5% to settle at 14.35 levels.
Wall Street's main indexes rallied on Monday, with the Dow marking a record-high close after the United States and Iran struck a preliminary agreement to end the Middle East war and reopen the Strait of Hormuz, leading to an easing of inflation fears as crude oil prices dropped.
Asian stocks inched up on Tuesday after rallying on the previous session on news of a peace deal between Iran and the U.S., as investors turned their focus to several central bank decisions including an expected rate hike from the Bank of Japan.
The U.S. dollar held near 10-day lows on Tuesday as a deal to end the Middle East war buoyed risk appetite, with attention turning to central bank meetings in Japan and Australia to gauge if the peace deal came a little too late to ease near-term inflation concerns.
Oil prices rebounded on Tuesday on concerns about the lack of details in a preliminary agreement ending the war between the U.S. and Iran and the realization the resumption of supply through the key Strait of Hormuz may take longer than thought.
Gold prices were largely steady on Tuesday after rising to a more than one-week high in the previous session, as investors awaited further details on the U.S.-Iran peace deal.
Stocks in F&O ban today
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Foreign portfolio investors net bought shares worth Rs 200 crore on Monday. DIIs, meanwhile, were net buyers at Rs 3,189 crore.
The Indian rupee rose against the US dollar for a second straight session on Monday, as oil prices plunged following the US-Iran preliminary agreement to end their conflict and reopen the crucial Strait of Hormuz.
