Indian stock markets showed resilience on Monday as they bounced back from initial declines. The Sensex edged up by 0.20 percent to close at 72,809.67, while the Nifty50 ended 0.29 percent higher at 22,120.05 after hitting a low of 21,821 earlier in the session.
Several prominent stocks contributed to the positive momentum in the Nifty 50, including Cipla, Asian Paints, Divi’s Lab, Adani Ports, and Adani Enterprises. Conversely, Tata Motors, BPCL, Shriram Finance, ONGC, and NTPC experienced losses.
Technical analysis by Rupak De, Senior Technical Analyst at LKP Securities, indicated a potential bullish reversal signaled by the hammer pattern on the daily chart. De highlighted the importance of the index’s support levels and resistance zones, suggesting a cautious approach amid market fluctuations.
The market’s recovery on Monday was notable, with most sectoral indices showing gains except for Auto, PSU Bank, Oil & Gas, Consumer Durables, and Media sectors. Sectors like Pharma, Healthcare, and Metal were among the notable gainers.
Internationally, global stock markets were buoyed by expectations of positive economic data releases, including U.S. inflation figures and Chinese activity data. Chinese authorities’ stimulus efforts, such as plans to sell 1 trillion yuan in longer-dated bonds, also influenced market sentiment.
In terms of market performance, the Nifty 50 witnessed 29 stocks closing higher and 21 stocks ending in the red. Market breadth on the NSE reflected mixed sentiments, with 1134 stocks advancing, 1500 declining, and 106 remaining unchanged out of a total of 2,740 stocks traded.
While global stock indices are reaching new highs, factors such as the U.S. economy’s strength supporting the dollar and the Bank of Japan’s hawkish stance impacting bond yields continue to influence currency and financial markets. Investors are advised to stay vigilant and monitor key economic indicators and market trends for informed decision-making in the coming sessions.