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GIFT Nifty indicates a positive start for Indian equity markets on Wednesday, July 29, with the index trading 130 points, or 0.54%, higher at 24,221.5 around 8:07 am IST.
GIFT Nifty Today, July 29.
GIFT Nifty today indicated a positive start for Indian equity markets on Wednesday, July 29, with the index trading 130 points, or 0.54%, higher at 24,221.5 around 8:07 AM IST. The strong indication points to a gap-up opening for the benchmark Nifty 50, which closed at 23,985 in the previous session.
The upbeat opening cues come despite heightened geopolitical tensions in the Middle East, as investors continue to assess the impact of fresh military strikes and surging crude oil prices ahead of the US Federal Reserve’s policy decision later in the day.
Early trade in GIFT Nifty suggests Indian markets could open over 200 points higher than the previous Nifty close. However, analysts believe volatility may remain elevated as geopolitical developments and the Fed outcome continue to drive global risk sentiment.
Middle East Tensions Push Oil Higher
Investor sentiment remains cautious after fresh attacks involving US and Saudi forces on Iran-linked militant sites in Iraq, along with reports of Iranian missile strikes targeting US military bases. The renewed escalation has revived concerns over global energy supplies.
WTI crude oil climbed back to around $82 per barrel, while Brent crude traded near $86.8 per barrel, as markets priced in a fresh geopolitical risk premium.
Asian Markets Recover After Sharp Selloff
Asian equities rebounded on Wednesday following a steep decline in the previous session, supported by gains in technology stocks.
South Korea’s KOSPI rose over 1%, with SK Hynix advancing after reporting a more than six-fold jump in quarterly operating profit. Japan’s Nikkei 225 also gained around 1%, while the MSCI Asia-Pacific index excluding Japan climbed 0.8%.
Market participants are now awaiting earnings from Microsoft and Meta, which are expected to provide further direction for the global AI trade.
Nifty Technical Outlook
According to Ponmudi R, CEO of Enrich Money, Nifty needs to reclaim and sustain above the 24,000 psychological level to strengthen near-term sentiment. A sustained move above 24,000 could extend the rally towards 24,200, followed by 24,400, where the 200-day Exponential Moving Average (EMA) is placed.
On the downside, the 23,900-23,800 zone remains the immediate support. A break below 23,800 may trigger fresh selling pressure and drag the index towards the 23,600 demand zone.
Focus on Fed Policy Decision
Apart from geopolitical tensions, investors are closely tracking the US Federal Reserve’s monetary policy announcement due later in the day.
While markets largely expect the Fed to keep interest rates unchanged, traders continue to price in the possibility of a surprise rate hike amid rising oil prices and persistent inflation concerns. The outcome, along with commentary from policymakers, is likely to influence global equity markets in the near term.
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