By Dharmesh Prajapati
The benchmark indices Sensex and Nifty climbed higher on Monday, tracking a global rally, as oil prices tumbled after U.S. โPresident Donald Trump and Iran’s deputy โforeign minister said an initial deal had been reached to end the war and resume traffic through the โStrait of Hormuz.
At around 9:30 a.m., the Sensex was up 1,051.59 points or 1.39 percent at 76,579.55, while the broader Nifty stood at 23,944.80, up 321.90 points or 1.36 percent.
Key factors behind market rise
1) US-Iran deal: US-Iran will sign a memorandum โof understanding in Switzerland on Friday.
2) Rupee rises: The rupee opened 43 paise stronger on June 15 after the US and Iran reached a ceasefire agreement and the Strait of Hormuz was reopened, easing concerns over global energy supplies and boosting investor sentiment.
3) Brent crude prices decline: Brent crude dropped 4.6% to about $83 a barrel, the lowest since โMarch. Lower oil โprices are โ a positive for India, the world’s third-largest oil importer, as they help โease pressure on inflation, the rupee โand โ the country’s trade deficit.
Technical Outlook
Anand James, Chief Market Strategist at Geojit Investments, said “From the vicinity of lower bollinger band, just the other day, Nifty now aims for the upper bollinger band, which is now at 24029. However, expect volatility, once in the vicinity of 23900. While a close near 23700 could point to consolidation, a direct rise above 24029, will spark the next leg of upsides aiming 24300-600. This though is less expected right away.”
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