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Indian equity markets are set for a cautiously optimistic start, though lingering geopolitical and macroeconomic uncertainties are likely to temper risk appetite.
Gift Nifty Today.
Indian equity markets are likely to open on a positive note on Friday, August 28, after a sharp sell-off in the previous session. The Gift Nifty was trading at 24,259.5, up 59.5 points or 0.25 per cent, indicating a mildly firm start for the domestic benchmark indices.
The positive opening indication comes after Indian markets fell sharply on Thursday, with selling intensifying towards the fag end of the session. The Sensex declined 539.35 pointsor 0.70 per cent, to 76,933.59, while the Nifty 50 fell 116.90 points, or 0.48 per cent, to 24,090.85. Both indices closed at their respective day’s lows on the monthly derivatives expiry day. Weakness in HDFC Bank and persistent geopolitical concerns weighed on sentiment.
According to Ponmudi R, CEO of Enrich Money, Indian equities are likely to see a cautiously optimistic start, although geopolitical and macroeconomic uncertainties could keep investors selective and encourage profit booking at higher levels. He said crude oil prices remain elevated, with WTI hovering around $83-84 a barrel, although diplomatic developments involving Iran and Oman have eased some of the immediate supply-risk concerns around the Strait of Hormuz.
“Global cues are mixed but broadly supportive. Wall Street’s benchmark indices closed largely flat to higher overnight, even as the latest PCE inflation print — the Federal Reserve’s preferred inflation gauge — came in slightly above expectations, leaving the near-term policy outlook uncertain. Sentiment in technology and semiconductor stocks, however, was clearly lifted by Nvidia’s blowout quarterly results, which triggered a broad rally across AI-linked names in the US, helping the Nasdaq end about 1.5% higher,” he added.
Asian markets are trading mixed this morning, with Japan’s Nikkei notably firmer while South Korea’s Kospi remains on the back foot, reflecting the push-and-pull between AI-driven optimism on one side and caution over the interest-rate outlook on the other.
“Attention now turns to Fed Chair Kevin Warsh’s first Jackson Hole keynote, the week’s most closely watched macro event. With the Federal Reserve’s preferred inflation gauge coming in slightly above expectations, investors will parse his remarks for fresh clues on the September policy path and the broader interest-rate outlook,” Ponmudi said.
On the geopolitical front, the Strait of Hormuz remains the key variable to watch. Iran and Oman have reportedly reached an initial understanding on managing navigation and traffic through the waterway, and shipping flows have reportedly continued, although Tehran has cautioned that a durable resolution will require more than a bilateral arrangement with Oman. “Until the situation is fully resolved, crude oil prices, the rupee and broader risk sentiment are likely to remain sensitive to fresh headlines from West Asia,” he said.
Nifty Technical View
Ponmudi said the NSE Nifty is likely to maintain a cautious bias as the index continues to face selling pressure at higher levels. The 24,300-24,400 region, which also coincides with the 200-day EMA, remains the key resistance zone. On the upside, the 24,300-24,400 zone remains a crucial resistance band that continues to cap recovery attempts. A sustained breakout and close above 24,400 would be needed to improve the technical structure and revive upward momentum toward higher levels.
“On the downside, 24,100-24,000 now forms the immediate support zone. A sustained break below the 24,000 psychological mark could drag the index toward the 23,800 zone. The RSI stands around 43, below the neutral mark, indicating weakening momentum. Overall, the near-term technical outlook remains cautious. The index needs to decisively reclaim 24,400 to establish stronger bullish momentum, while sustained trading below 24,200 could keep the index subdued and limit further recovery attempts,” He said.
Quick Answers
Ask News18Investors are awaiting remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium for fresh clues on the September policy path and the broader interest-rate outlook. The Federal Reserve’s preferred inflation gauge came in slightly above expectations.
Ask News18About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
August 28, 2026, 08:31 IST
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