Gift Nifty Rises 120 Points, Indicates Gap-Up Opening In Indian Markets Today; Crude, Bond Yields Remain Key Risks

Indian equity markets are likely to open on a positive note on Thursday, September 3, with the Gift Nifty indicating a recovery after the domestic benchmarks extended their losing streak to a third session on Wednesday. The Gift Nifty was trading at 24,085, up 120 points or 0.50 per cent, as of 7:39 am IST.

The Sensex ended Wednesday at 76,570.35, down 373.93 points or 0.49 per cent, while the Nifty declined 141.35 points or 0.59 per cent to settle at 23,914.45. Elevated crude oil prices, geopolitical tensions in West Asia and rising global bond yields continued to weigh on investor sentiment.

Ponmudi R, CEO of Enrich Money, a Sebi-registered online trading and wealth-tech firm, said, “Indian markets are likely to remain cautious as elevated crude

oil prices and rising global bond yields continue to weigh on investor sentiment. The sharp rebound in oil prices has rekindled inflation concerns, driving bond yields higher as investors increasingly price in the possibility that major central banks, led by the U.S. Federal Reserve, may keep interest rates higher for longer.”

Asian markets were trading modestly higher in early trade, with Japan’s Nikkei 225 largely flat and South Korea’s Kospi gaining nearly 1%. The mildly positive trend follows a firmer close on Wall Street overnight. However, elevated crude prices and lingering geopolitical uncertainty could limit gains in Indian equities.

WTI crude continues to trade in the $90-91 per barrel range. On the geopolitical front, US President Donald Trump has indicated that the latest round of fighting between the US and Iran is unlikely to be prolonged. Markets, however, remain sensitive to developments in the conflict given the potential impact on energy supplies, crude oil prices and global risk sentiment.

From a technical perspective, the Nifty continues to exhibit a weak technical setup, with selling pressure persisting at higher levels. On the upside, the 24,000–24,200 region is likely to act as the immediate resistance band. A sustained move above 24,200 would be required to stabilize the near-term structure, while a decisive breakout above 24,400 would strengthen bullish momentum and signal a meaningful recovery, Ponmudi said.

On the downside, the 23,800 zone remains the immediate and crucial support level. A decisive break below this region could intensify selling pressure and drag the index towards the 23,600 level. Overall, the near-term technical outlook remains weak. The 23,800 level will be crucial to defend against further downside, while the 24,000–24,200 region remains the key hurdle for any meaningful recovery attempt, he added.