The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, August 5, supported by positive global cues and a sharp decline in crude oil prices.
Gift Nifty trends also pointed to a gap-up opening for the domestic benchmark indices. The Gift Nifty was trading around 24,733, a premium of 177.4 points over the previous close of the Nifty futures.
In the previous session, the Indian stock market ended in the red, with both benchmark indices extending their losses. The BSE Sensex declined 210.08 points, or 0.27%, to close at 78,428.95, while the Nifty 50 fell 159.40 points, or 0.64%, to settle at 24,614.90, though it managed to close above the 24,600 mark.
Crude oil prices
Crude oil prices extended losses on Wednesday as optimism over progress in negotiations to reopen the Strait of Hormuz eased concerns about potential supply disruptions from the Persian Gulf. According to a Bloomberg report, Brent crude fell below $79 a barrel, while West Texas Intermediate (WTI) slipped towards $75 a barrel, after both benchmarks tumbled more than 10% over the previous two trading sessions.
US-Iran war
According to a Bloomberg report, Qatar said an interim proposal had been drafted, while both Washington and Tehran signalled progress in talks aimed at reopening the strategically important Strait of Hormuz. However, the report noted that even if a temporary agreement restores commercial shipping through the waterway, it may not be sufficient to end the broader conflict or resolve US President Donald Trump’s concerns over Iran’s nuclear programme. Bloomberg also reported that Trump spoke with Qatar’s Emir Sheikh Tamim bin Hamad Al Thani on Tuesday to discuss efforts to reduce tensions between the United States and Iran.
What Gift Nifty live chart signals?
The Gift Nifty Live Chart shows a gap-up start for the Indian stock market today. By 8:00 AM, the Gift Nifty was trading around the 24,740 level, a premium of 184.4 points from the Nifty futures’ previous close of 24,555.60.
Ponmudi R, CEO of Enrich Money, said, Indian equity markets are poised for a firm start, with improving global risk sentiment underpinning investor confidence after renewed optimism over a potential US-Iran agreement raised expectations that shipping through the Strait of Hormuz could gradually normalize. The prospect of easing geopolitical tensions has driven a sharp decline in crude oil prices, with WTI crude falling to a fresh low near $74 a barrel before stabilizing around the $75 mark. Reflecting the improvement in sentiment, GIFT Nifty futures are trading above the 24,700 level in early trade, comfortably above the Nifty’s previous close of 24,614, pointing to a positive opening for domestic equities.
Asian markets are trading sharply higher, adding to the improving risk appetite across global equities. Japan’s Nikkei 225 has advanced more than 3%, while South Korea’s Kospi has surged over 4%, reflecting broad-based optimism as easing geopolitical tensions and lower crude oil prices continue to support regional markets.
While the recent decline in crude oil prices reflects growing optimism over a potential normalisation of shipping through the Strait of Hormuz, investors are likely to remain cautious until there is greater clarity on the evolving geopolitical situation. Against this backdrop, attention is firmly focused on the Reserve Bank of India’s Monetary Policy Committee (MPC) decision due this morning. Market participants will closely assess the central bank’s commentary on inflation, liquidity conditions, economic growth, and the broader policy outlook for clues on the future path of interest rates. The policy guidance is expected to be especially significant for banking and other interest rate-sensitive sectors.
Stock market today
Speaking on the outlook for the Nifty 50 today, Ajit Mishra, Senior Vice President, Research at Religare Broking, said the Nifty 50 witnessed profit-taking after Monday’s sharp up move but continues to hold above the key support zone of 24,350–24,400, which remains crucial for sustaining the prevailing positive bias. On the upside, the 24,800–25,000 zone remains the immediate resistance, and a decisive move above this band could pave the way for an extension towards 25,200.
On the outlook for the Bank Nifty today, Ponmudi R, CEO of Enrich Money, believes Bank Nifty is expected to open on a firm note, with the index continuing to build on its recent recovery despite intermittent profit booking. Technically, the 58,300–58,500 zone continues to act as the immediate resistance band. A sustained breakout above this region could strengthen buying momentum and open the door for an advance towards the 58,800–59,000 region.
On the downside, the 57,600–57,500 zone remains the immediate support, followed by the 57,300 level. Holding above these support levels will be important to maintain the prevailing recovery structure, while a decisive break below 57,300 could weaken sentiment and drag the index towards the 57,000 psychological mark.
Stocks to buy today
Regarding stocks to buy today, market experts — Sumeet Bagadia of Choice Broking, Ganesh Dongre, and Senior Manager — Technical Research at Anand Rathi, recommended these eight buy-or-sell stocks for intraday trading: Saregama India Ltd, Welspun Corp Ltd, Delhivery Ltd, Zydus Lifesciences Ltd, Wipro Ltd, Inox Green Energy Services Ltd, Syrma SGS Technology Ltd, and Welspun Living Ltd.
Sumeet Bagadia’s stock recommendations today
Buy Saregama India in cash at ₹543; SL at ₹523; TGT at ₹582
Buy Welspun Corp in cash at ₹1,737; SL at ₹1,675; TGT at ₹1,860
Ganesh Dongre’s buy or sell stocks
Buy Delhivery at ₹473; sl at ₹465; tgt at ₹490
Buy Zydus Lifesciences at ₹1,120; sl at ₹1,100; tgt at ₹1,160
Buy Wipro at ₹188; sl at ₹184; tgt at ₹195
Shiju Koothupalakkal’s intraday stocks for today
Buy Inox Green Energy cmp: ₹178; Target: ₹192; Stop loss: ₹174
Buy Syrma SGS Technology cmp: ₹1,421; Target at ₹1,490; Stop Loss at ₹1,392
Buy Welspun Living cmp: ₹160.50; Target ₹172; Stop Loss ₹156
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
