Ahead of Market: 10 things that will decide stock market action on Thursday
Why it matters: A US-Iran ceasefire agreement sent crude prices lower, potentially reopening the Strait of Hormuz for one-fifth of global oil trade.
- India VIX dropped by 20.23% to 19.70, signaling decreased market volatility.
- Rupak De (LKP Securities) noted Nifty's strong gap-up start, reclaiming the 200SMA, and anticipates a move towards 24,265, but warns of potential selling pressure or panic if US-Iran truce talks fail.
- Wall Street's main indexes climbed to near one-month highs after the US and Iran agreed to a two-week ceasefire, lowering crude prices and raising expectations for resumed energy supplies through the Strait of Hormuz.
- Major European indices like UK's FTSE 100 and Germany's Dax traded with strong gains between 3.10% and 5% in response to the ceasefire.
- Bajaj Broking highlighted Nifty forming a fourth consecutive bullish candle, closing above its 20-day EMA, and projects an extended up move towards 24,300 and 24,700 if it sustains above the 20-day EMA and Wednesday's bullish gap area.
- ITC Hotels (Rs 502 crore) and Gallantt Ispat (Rs 321 crore) were among the most active stocks on BSE by turnover.
Global markets, including Wall Street and major European indices, surged to near one-month highs following a temporary US-Iran ceasefire agreement, which sent crude prices lower and eased concerns over Strait of Hormuz oil supplies. Analysts like Rupak De and Bajaj Broking see continued positive sentiment for India's Nifty, with potential upside towards 24,265-24,700, though De warns of risks if truce talks falter.
