Image Source : FILE Business stock exchange building.
In early Tuesday trade, the Sensex surged by 254.11 points, reaching 71,569.20, while the Nifty marked a rise of 61.35 points, reaching 21,480. This positive momentum follows a decline in benchmark equity indices Sensex and Nifty on Monday, attributed to profit-taking by investors following a record-breaking rally in the previous week and a generally weak trend in Asian markets.
Several major Nifty sectoral indices, including Nifty Bank, Nifty Financial Services, and Nifty IT, were trading in negative territory. However, Nifty FMCG and Nifty Oil & Gas were among those showing gains in the early trade.
The top five stocks on the Nifty 50 included Apollo Hospitals, Nestle India, Tata Consumer Products, ONGC, and Coal India. On the contrary, top drags were seen in Hero MotoCorp, TCS, M&M, Bajaj Finserv, and Hindalco.
Despite recent corrections in heavyweight stocks due to the global lull, analysts maintain a positive long-term outlook for domestic markets. The Indian markets have witnessed significant gains this month, supported by a rally that began after BJP’s electoral victories in key states. Favorable macroeconomic data, except for rising inflation, has further strengthened sentiment on Dalal Street.
The US Federal Reserve’s policy stance and commentary, indicating potential rate cuts in early 2024, have also contributed to a positive investor outlook, with foreign investors injecting substantial funds into the domestic market.
Looking ahead, analysts anticipate marginal opening trends, with Nifty finding support at 21,320 and higher resistance at 21,500. The Indian markets are expected to consolidate in the range of 21,200-21,500 levels, and traders are advised to buy on dips with a strict stop loss of 21,200. Investors holding long positions are recommended to maintain trailing stop loss near 21,200, providing guidance for potential market movements.
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