Following the Ram Navami vacation, the Sensex and Nifty indexes opened on an upward track on Thursday, signalling a positive start to the stock market. Notably, the Nifty opened at 22,250.65, up 102.75 points, and the Sensex recorded a noteworthy advance of 291.27 points, beginning at 73,234.95.
Of the Nifty companies, 40 registered gains, while 10 experienced declines. Notable gainers included BPCL, Power Grid, HDFC Life, Hero MotoCorp, and Adani, while HCL Tech, NTPC, Nestle India, Apollo Hospital, and Axis Bank were among the top losers.
Technical analysis suggests a weakened trend as the index breached the 21-day Exponential Moving Average (EMA). However, a rebound is anticipated from support levels near 22,000, backed by oversold conditions on hourly charts.
Option Interest (OI) data indicates significant OI concentrations at 22,400 and 22,500 strike prices on the call side, and at 22,000 on the put side.
Across Asia, equities displayed mixed performance, with Japanese stocks declining, while Australian and South Korean equities surged. Futures trading suggested early losses in Hong Kong but gains in China. Investors remained attentive to earnings reports from tech giants amidst global market fluctuations.
Varun Aggarwal, founder and managing director of Profit Idea, commented on prevailing concerns over delayed U.S. interest rate adjustments and ongoing geopolitical tensions in the Middle East. He noted fluctuations in Treasury markets, with two-year yields dipping below 5 per cent, and solid demand observed in the USD 13 billion sale of 20-year bonds. Aggarwal also highlighted stability in the U.S. dollar in Asia, with Japanese and Korean officials expressing concerns about currency devaluation.
Despite market uncertainties, the Indian stock market kicked off the trading day positively, reflecting investor optimism amid global economic challenges and volatility. As market dynamics evolve, investors remain vigilant, balancing optimism with cautious apprehension while navigating the financial landscape.