The Indian stock markets opened with gains on Tuesday, continuing to show strong resistance against global headwinds.
The Nifty 50 index started at 25,007.90, gaining 71.50 points or 0.29 per cent, while the BSE Sensex surged 209 points or 0.26 per cent to 81,768.72 points at the opening session.
At 10:33 am, Sensex was trading 30.63 points higher at 81,590.17, whereas Nifty was trading 7.10 points up at 24,943.50.
According to experts, global markets bounced back after the decline on Monday and last week, but volatility is expected as the Fed rate cut date approaches on September 18th.
“The US market had a relief bounce back, with Big Tech also recovering some of the last week’s losses. Asian markets are following the US cues and are largely positive. This is more of a technical dip buying, as the four issues of economic slowdown and falling commodity prices, rate hikes by BOJ , overextended global markets with a concentrated Big Tech base, and an imminent Fed rate cut on Sep 18th, continue to cast a shadow on markets. Global cues remain the dominant theme and we expect more volatility/weakness going into the Sep 18th announcement by the Fed” said Ajay Bagga to ANI.
In the Nifty 50 list, 37 stocks opened with gains, while 13 opened in the red. In the broad market indices, the Nifty Midcap 50, Nifty Midcap 100, and Nifty Smallcap 100 surged by more than 1 per cent during the opening session.
In the sectoral indices, Nifty Media emerged as the leader in gains, surging 1.53 per cent in the opening, followed by Nifty Pharma. Nifty Auto and Nifty Bank opened flat with marginal gains.
“We believe the pullback formation is likely to continue as long as the market is trading above the 20-day SMA (simple moving average) or 24800/81000. On the higher side, it can move towards 25000/81800 and 25050/82000. It is considerable to reduce long positions between the same. On the other hand, an uptrend below 24750/80900 would be unsafe; traders may prefer to exit long positions” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
The Asian markets showed flat movement on positive side on Tuesday after the sharp decline on Monday, the Japan’s Nikkei index gained marginally 0.08 per cent while the Hong Kong’s Hang Seng gained 0.30 per cent at the time of filing this report. Taiwan’s index Taiwan Weighted surge by 0.18 per cent and South Korea’s KOSPI traded almost flat at the time of filing this report.
The European and US markets also gained on Monday as the US index S&P 500 closed with gain of 1.35 per cent while Nasdaq surged 1.34 per cent by the closing bell. (ANI)
