More Stories

Informist, Monday, Sept. 7, 2026

 

By Adhithya Aji

 

MUMBAI – Benchmark indices are expected to move in a range in the near term as global cues provide no breather to the equity market and elevated crude oil prices have not stopped being a overhang over investor sentiment. However, some technical analysts expect a counter-trend rally as the Nifty 50 stands at an oversold position now.

 

"Indian equities are likely to remain under pressure amid weak global cues, elevated crude prices and continued concerns over supply disruptions following the latest escalation in US-Iran hostilities around the Strait of Hormuz," Siddhartha Khemka, head of research at Motilal Oswal Financial Services, said in a note. At 1718 IST, the November futures of Brent crude oil were at $97.52 per barrel. This is nearly 34% higher than the pre-war levels of energy. Equity market is looking out for clarity on the US-Iran war ending, which will lead crude oil prices to stabilise, Anita Gandhi, head, Institutional Equities at Arihat Capital Markets, said. 

 

In the June quarter, the Indian corporates reported better-than-expected earnings, despite higher crude oil prices and commodity inflation during the period. "Q1 was very good relatively in terms of earnings, but certainly we will see some amount of impact coming in September quarter numbers," Gandhi said.

 

Over the past seven days, Nifty IT fell over 1%. The same level of fall the benchmark Nifty 50 recorded in the same period. Information technology companies look attractive in terms of valuation, according to Gandhi. Investors who have a long-term perspective and are not worried by near-term volatility are the only ones who can remain in the sector, while closely watching how fast they adapt to changing times to return to growth. Meanwhile, it's doubtful in the case of short-term investors. This is mainly due to lack of clarity on how artificial intelligence will play out for Indian players. The companies that integrate AI faster are likely to do well, Gandhi added. She said some weakness will remain in the sector until clarity emerges. 

 

"Earlier, they used to enjoy higher valuation because of higher growth. Now, growth itself is a bit of a question. So, if they're not able to maintain growth, then yeah, obviously, they may trade going future for lower multiples," Gandhi said.

 

On Monday, the Nifty 50 closed 0.5% lower at 23779.15 points. Technically, the Nifty 50 is expected to have a range-bound movement. "Going ahead, global cues are likely to influence near-term market trends, while persistent selling pressure continues to keep the undertone cautious," Osho Kishan, chief manager, technical and derivatives research at Angel One, said in a note. Technical analysts estimate the support for the 50-stock index around 23700-23620 points, while the resistance is seen at around 23900-23950 points.

 

On the other hand, the Nifty 50 is expected to see some counter trend rally in the near term as the index now founds itself in an oversold zone, according to Jatin Gedia, vice-president, technical research, at Teji Mandi Investment Technologies. He added that the Nifty 50 is likely to remain weak until it moves above 23950 level. Gedia pegs the support for the index around 23606 points, which is the lowest level recorded in June.  End

 

US$1 = INR 94.49

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.