Indian stocks advance as tech gains offset financial weakness amid rising crude prices
Indian benchmark indices posted modest gains on Thursday driven by technology stocks, but rising crude oil prices and escalating Middle East tensions are keeping the broader market range-bound and shifting investor focus to specific technical breakouts.
Indian benchmark indices traded slightly higher on Thursday, with the Nifty 50 rising 0.30% to 24,153 and the BSE Sensex advancing 0.38% to 77,478.49 at 11:58 IST. Gains in the information technology sector successfully offset weakness in select financial stocks following their quarterly earnings reports.
Investor risk appetite remains constrained by escalating geopolitical friction in the Middle East. The United States recently struck Iranian coastal defense and missile sites after reimposing a naval blockade, prompting Tehran to threaten regional energy export disruptions in what it termed an existential conflict. Consequently, Brent crude extended its winning streak to a fourth consecutive session, hovering near $85 per barrel, which keeps inflation and India's import bill under close scrutiny.
These macroeconomic pressures, combined with a depreciating rupee, have confined the Nifty 50 to a narrow trading band between 24,000 and 24,200. Analysts expect the index to remain range-bound with a positive bias, noting that immediate support sits at 24,000, followed by 23,800, and a sustained move above 24,200 could trigger a broader breakout. Until crude prices stabilize, market direction will likely depend on stock-specific action from the June-quarter earnings season and the progress of the southwest monsoon.
Amid the broader index consolidation, market participants are looking at individual equities showing technical momentum. Analyst Nagaraj Shetti highlighted Life Insurance Corporation, noting the stock is consolidating near a crucial hurdle and is expected to break out above the ₹445 to ₹450 levels, supported by positive daily and weekly relative strength indicators.
Shetti also pointed to RACL Geartech, which has seen a sharp advance this week. The stock is approaching a breakout point from a larger consolidation pattern around ₹1,425, with long-term charts displaying bullish higher tops and bottoms alongside positive volume and daily momentum signals.
