GIFT Nifty Signals Negative Start for Indian Markets; Asian Tech Selloff Weighs on Sentiment

GIFT Nifty Today, July 28: Indian benchmark indices are likely to open on a cautious note on Tuesday, July 28, after GIFT Nifty indicated a muted start despite easing crude oil prices and improving geopolitical sentiment in West Asia.

At 7:35 am IST, GIFT Nifty was trading at 23,977.5, down 64.5 points or 0.27%, suggesting that the NSE Nifty could open marginally lower after Monday’s strong rally.

GIFT Nifty slipped below the 24,000 mark, reflecting cautious investor sentiment following a sharp selloff across Asian technology stocks. The weak cues come after Indian markets snapped a five-session losing streak on Monday, supported by falling crude oil prices and easing tensions in West Asia.

On Monday, the BSE Sensex surged 776 points to close at

76,835.78, while the Nifty 50 gained 228.50 points to settle at 23,995.95.

Asian Markets Under Pressure as AI Stocks Tumble

Asian markets traded sharply lower on Tuesday, led by a steep decline in South Korea’s technology stocks. The KOSPI slumped around 8%, with Samsung Electronics falling as much as 9.5% and SK Hynix dropping over 11%. The selloff was triggered by renewed concerns over AI infrastructure spending, financing risks and intensifying competition from Chinese semiconductor companies.

Investor sentiment also weakened after reports suggested that Chinese firms are making progress in developing domestic deep ultraviolet (DUV) lithography equipment, raising concerns that China’s memory chip manufacturers could accelerate capacity expansion and challenge global industry leaders.

Adding to the pressure, Nvidia shares fell nearly 5% overnight after reports that the company could provide a financial backstop for a massive OpenAI data-centre project, prompting fresh concerns over AI-related valuations. Japan’s Nikkei 225 also declined more than 3% amid the broader technology-led selloff.

Lower Crude Oil Offers Support

Despite weak global equity cues, falling crude oil prices continue to provide support to Indian markets. Oil prices extended losses as optimism over renewed diplomatic talks with Iran eased concerns over supply disruptions. Softer crude prices are positive for India as they help reduce inflationary pressures, lower the country’s import bill and improve corporate profitability.

Expert View

Ponmudi R, CEO of Enrich Money, said, “Indian markets are expected to trade cautiously, balancing an improving geopolitical backdrop against renewed volatility in global technology stocks. The U.S. continues to pause strikes on Iran, keeping hopes of a diplomatic resolution alive, although investors remain cautious as markets await tangible progress in the ongoing negotiations. Early indications from Gift Nifty futures, trading around the 24,000 mark, point to a largely flat start for domestic equities.”

Crude oil prices extended their decline as optimism over renewed talks with Iran eased concerns about potential supply disruptions. WTI crude is currently trading in the $81–82 per barrel range, offering further relief for India’s inflation outlook and import bill, while also supporting broader macroeconomic sentiment, he added.

“However, the improvement in geopolitical sentiment has been overshadowed by a sharp sell-off across Asian equity markets, led by technology stocks. Japan’s Nikkei 225 has fallen more than 3%, while South Korea’s Kospi has plunged over 7% in early trade, as renewed concerns over elevated AI-related valuations and weakening global risk appetite triggered broad-based selling across the technology sector,” Ponmudi said.

He added that while easing Middle East tensions and lower oil prices provide a supportive backdrop for Indian equities, the sharp correction in Asian technology stocks is likely to keep investor sentiment subdued. With concerns over the global AI trade weighing on risk appetite, domestic markets are expected to adopt a cautious stance despite the relief from softer crude prices.

Technical View

Ponmudi said, “The NSE Nifty is expected to trade with a cautious undertone, as a sustained move above the 24,000 mark, reinforced by the highest Call Open Interest at this strike, remains crucial for the index to shift into a more constructive phase. A decisive breakout above this level could strengthen bullish momentum and pave the way for an advance towards the 24,150-24,200 zone, followed by 24,400.”

On the downside, the 23,900-23,800 zone remains the immediate support, backed by strong Put Open Interest, followed by the 23,600 level, which continues to serve as a crucial demand area. Overall, the near-term technical outlook stays cautiously constructive. A sustained move above 24,000 is required to confirm that the recovery is gaining genuine traction, while holding above 23,800–23,900 remains essential to sustain the current momentum, he added.