Indian shares set to pause after oil-led rally

Indian shares were set to open flat on Tuesday, with analysts expecting a phase of consolidation in the absence of fresh triggers after gains in six out ​of seven sessions, while sentiment remained constructive on easing Middle East tensions. GIFT ‌Nifty futures were trading at 24, 130. 5 as of 7: 49 a. m. IST, indicating the Nifty 50could open near Monday’s close of 24, 102. 9. Broader Asian markets fell 1. 2%, after an 8. 2% rise over the previous seven ​sessions. The United States waived sanctions on Iran for 60 days from Monday after ​the first talks under a nascent peace deal, while officials reported a sustained ⁠lull in fighting in Lebanon under the agreement aimed at ending hostilities across the ​region. Brent crude futures traded around $78 a barrel. Softer crude prices are broadly positive for India, the ​world’s third-largest oil importer, as they help ease inflationary pressures, reduce the import bill, and relieve pressure on the current account, consumption and growth. While markets have continued their advance due to a drop in ​crude prices, momentum indicators are pointing towards a sideways trend, highlighting a phase of ​near-term consolidation, said Sudeep Shah, head of technical and derivative research at SBI Securities. The Nifty and Sensex have ⁠gained 4. 1% and 4. 4%, respectively, over the past seven sessions, aided by lower oil prices and a moderation in foreign outflows following government and central bank measures to support the rupee. “For Nifty, the zone of 23, 970-23, 950 will act as a crucial support while resistance ​lies in 24, 200-24, 230 band, ” ​Shah said. Foreign portfolio ⁠investors sold domestic shares worth 6. 36 billion rupees ($67. 18 million) on a net basis on Monday, while domestic institutional investors bought equities worth ​a net 10. 36 billion rupees.

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