Nifty Eyes 24,300 Breakout as Crude Oil Plunge Boosts Sentiment

Indian equity markets enter the new trading week with renewed optimism following a strong performance in the previous session. The Nifty 50 closed at 24,056, up 0.20%, while the BSE Sensex settled at 77,100, marking a 0.40% gain. The Bank Nifty outperformed, climbing nearly 1% to 58,177, signaling robust institutional confidence in the financial sector as indices extended their winning streak to three consecutive weeks.

The primary driver behind this bullish sentiment is the sharp correction in global crude oil prices, which have plummeted over 9% in the past week and more than 20% throughout June. This retreat, triggered by a US-Iran truce, significantly eases concerns regarding India's imported inflation and current account deficit. By reducing pressure on corporate profit margins, the lower energy costs provide a favorable macroeconomic backdrop for domestic manufacturing and consumption-led sectors.

Looking ahead to the July 3 expiry, technical indicators suggest the Nifty faces immediate resistance in the 24,280-24,300 range. A decisive breakthrough above this hurdle could catalyze a rally toward 24,600. Conversely, the index finds immediate support at 23,800. While FIIs remained net sellers with an outflow of Rs 2,080 crore, the sustained buying activity from DIIs continues to provide a vital floor for the markets, maintaining a neutral monetary policy environment.