Indian equity markets were trading with a positive bias on Monday, August 24, with the BSE Sensex gaining around 200 points and the NSE Nifty 50 moving above the 24,300 mark during the session. Easing crude oil prices, renewed buying after last week’s weakness, positive global cues and strength in select IT and financial stocks are the key factors that helped improve sentiment. However, investors remain cautious because crude is still above $90 and fresh US sanctions on Iran are in focus.

1. Decline in Crude Oil Prices Supports the Market

One of the biggest positive factors today is the fall in crude oil prices. Brent crude slipped below $93 per barrel, easing some pressure on oil-importing countries such as India. Although prices remain high, the decline has reduced immediate concerns about India’s import bill, inflation and pressure on the rupee. Lower oil prices are also positive for sectors such as aviation, paints, chemicals and logistics.

2. Fresh Buying After Last Week’s Decline

Investors are also using the recent correction as an opportunity to buy stocks at lower levels. The Nifty 50 ended last week around 24,252, after falling for the third consecutive week. Today’s recovery suggests that some investors are looking for value after the recent weakness. Buying interest in large-cap stocks has helped the benchmark indices move higher during the session.

3. Positive Global Market Cues

Global markets are providing some support to Indian equities. US stocks ended higher on Friday, while investors are closely watching developments in US monetary policy and the upcoming speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium. Any indication of softer interest rates could improve global risk appetite and support emerging-market equities such as India.

4. IT Stocks Recover

IT stocks are showing signs of recovery after coming under pressure last week. The Nifty IT index gained around 0.8% in early trade, helping the Nifty move higher. Buying in major IT companies is providing support to the benchmark because of the sector’s significant weight in the index. Investors are also watching US rate expectations closely because they can influence technology valuations.

5. FII Inflows and Domestic Buying Support Sentiment

Foreign investor flows have also improved. Foreign portfolio investors have reportedly invested around 23,544 crore in Indian equities during August so far, helping provide a strong liquidity cushion for the market. Domestic institutional buying and a relatively stable rupee are also supporting investor confidence. The rupee remains range-bound as the RBI continues to manage volatility caused by high oil prices.

Key Technical Analysis

Sensex Technical Outlook

The Sensex is trading around 77,700-77,800 and has recovered from last week’s weakness. Immediate support is placed near 77,400, while resistance is seen around 78,000-78,200. The index needs to sustain above 78,000 to confirm stronger buying momentum. Holding above 77,400 could keep the short-term trend positive, while a move below this level may bring renewed selling pressure.

Nifty 50 Technical Outlook

The Nifty 50 has moved above 24,300, showing some recovery after last week’s decline. Immediate support is placed around 24,200-24,250, while resistance is seen near 24,350-24,400. A decisive breakout above 24,400 could strengthen the recovery and open the way towards 24,600. However, failure to hold 24,200 could bring the index back into the recent range.

Bank Nifty Technical Outlook

Bank Nifty is showing a sideways to mildly bullish setup as private banking stocks continue to attract buying interest. Immediate support is placed around 57,300-57,500, while resistance is seen near 57,800-58,000. A sustained move above 58,000 could trigger fresh buying and improve the short-term trend. On the downside, a break below 57,300 would weaken the current setup and increase selling pressure.

Today’s key takeaway: The market is recovering mainly because of lower crude oil prices, value buying, positive global cues, recovery in IT stocks and stronger foreign inflows. However, traders should remain cautious as Brent crude is still above $90 and fresh US sanctions on Iran remain a major risk. For the Nifty, 24,350-24,400 is the key resistance zone, while 24,200 remains an important support level.

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