The Sensex and Nifty stock indices got off to a strong start this trading week thanks to positive global data. Sensex began the day up 178.02 points at 74,064.96, while Nifty started the day up 49.35 points at 22,523.30.
Thirteen Nifty businesses reported increases in the first session, while nineteen saw decreases. While Titan, SBI, Shri Ram Finance Limited, Adani Ports, and Adani Enterprises suffered losses, notable winners included Britannia, Kotak Bank, JSW Steel, Maruti, and TCS.
Varun Aggarwal, founder and managing director of Profit Idea, remarked, “The positive momentum in the Indian markets mirrors the trend in Asian equities, which as expected opened strong on Monday. This optimism stems from China’s return from holiday and a softer-than-expected US jobs report, which has revived hopes for Federal Reserve rate cuts. US stock futures edged higher, with contracts in Australia and Hong Kong pointing to gains.”
Nevertheless, Nifty 50 technical indicators advise prudence. A bearish engulfing pattern produced by the index on the daily chart suggested that weakness was likely to come. There was a gravestone doji pattern on the weekly chart, suggesting that there might be a turnaround.
The immediate resistance at 22,600 and the ensuing fall levels at 22,120 indicate a downward turn in the short-term trend.
Traders will closely monitor central bank meetings scheduled for this week, including the Reserve Bank of Australia, expected to adopt a hawkish stance. Additionally, Chinese activity data and inflation readings in key emerging markets will be closely observed.
The positive start for Sensex and Nifty reflects broader optimism in global markets, driven by favorable economic indicators and central bank policies. Nonetheless, technical patterns suggest potential challenges ahead, urging investors to remain cautious amid uncertainties.