Indian equity markets are trading firmly higher on Thursday, 2 July, with the BSE Sensex gaining over 500 points and the NSE Nifty 50 crossing the 24,150 mark in intraday trade. Positive global cues, a sharp fall in crude oil prices, strong gains in IT stocks, and optimism surrounding US-Iran negotiations are the key factors that have boosted investor sentiment. Buying has been broad-based, with IT, financials, metals, and realty stocks leading the advance.

1. Crude Oil Falls Below $70 Per Barrel

The biggest trigger for today’s rally is the sharp decline in crude oil prices, with Brent crude slipping below the $70-per-barrel mark for the first time in weeks. The fall comes amid encouraging progress in US-Iran peace talks, reducing concerns over supply disruptions. Lower oil prices are a significant positive for India as they help ease inflation, reduce the import bill, and improve corporate profitability.

2. Optimism Over US-Iran Peace Talks

Investor confidence has strengthened after reports that the latest round of US-Iran talks in Doha has been constructive. Discussions over maritime security in the Strait of Hormuz and the release of frozen Iranian funds have improved hopes for a lasting diplomatic solution. The easing geopolitical risk has encouraged investors to shift back towards risk assets.

3. Strong Rally in IT Stocks

Information technology stocks are among today’s biggest gainers, with Infosys, TCS, and other frontline IT companies rising as much as 3%. Investors are accumulating export-oriented stocks amid improving global risk appetite and expectations that easing inflation could support technology spending in key overseas markets. The rally in IT has provided significant support to both the Sensex and the Nifty.

4. Positive Global Market Sentiment

Global markets are trading with a positive bias following gains on Wall Street and improving risk sentiment across Asia. Investors are encouraged by falling energy prices and expectations that central banks may adopt a less aggressive policy stance if inflation continues to cool. The supportive global environment has translated into broad-based buying in Indian equities.

5. Domestic Institutional Buying Offsets FII Selling

While Foreign Portfolio Investors (FPIs) have remained net sellers for the third consecutive session, strong buying by Domestic Institutional Investors (DIIs) has helped keep the market resilient. Continued domestic inflows into mutual funds and institutional investments have provided a solid cushion against foreign selling pressure.

Key Technical Analysis

Sensex Technical Outlook

The Sensex has witnessed a strong breakout above the 77,200 level and is trading near the day’s high, indicating sustained buying interest. The index remains comfortably above its short-term moving averages, confirming a positive trend. Immediate resistance is placed near 77,600–77,800, while support is seen around 76,900. A sustained move above resistance could extend the rally toward the 78,000 mark.

Nifty 50 Technical Outlook

The Nifty 50 has reclaimed the 24,150 level, signalling renewed bullish momentum after recent consolidation. The index has successfully moved above the key psychological 24,000 mark and is now approaching resistance around 24,250–24,300. Immediate support lies near 24,000, and holding above this level could pave the way for a move towards 24,500 in the coming sessions.

Bank Nifty Technical Outlook

Bank Nifty continues to trade with a positive bias, supported by strength in private banking and financial stocks. The index is holding firmly above the 58,000 level, indicating sustained institutional buying. Immediate resistance is placed near 58,400–58,600, while support is seen around 57,800. A breakout above resistance could trigger fresh upside momentum towards new short-term highs.

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