Mumbai (Maharashtra): The stock market commenced trading on Wednesday, showing signs of stability amidst mixed signals from global markets.
The benchmark indices, Sensex and Nifty, opened with marginal gains, indicating a cautious start to the day’s trading session.
The Sensex began the day with a modest rise of 2.05 points, opening at 73,097.27, while the Nifty also saw a slight uptick of 3.75 points, starting at 22,202.10.
At 10:12 am, Sensex was trading 95.04 points up at 73,190.26, whereas Nifty was trading 23.45 points up at 22,221.80.
Among the Nifty-listed companies, there were 26 advances and 23 declines, reflecting a balanced market sentiment at the opening bell.
Tata Consumer Services, Tata Motors, Bharti Airtel, SBI, and HDFC Life emerged as the top gainers, driving the positive momentum in early trading. Conversely, Apollo Hospital, Asian Paints, M&M, BPCL, and Wipro were among the top losers during the initial hours of trading.
The GIFT Nifty suggested a flat to slightly positive opening, with the index hovering around the 22,222.50 level, compared to the previous Nifty futures close of 22,196.
Varun Aggarwal, founder and managing director, Profit Idea said, “Tuesday’s trading session witnessed a rebound in Indian indices following a two-day correction. The Sensex surged by 305.09 points to close at 73,095.22, while the Nifty 50 settled 76.30 points higher at 22,198.35. Notably, the Nifty 50 chart displayed a bullish engulfing pattern on the daily chart, indicating a potential bullish momentum. However, analysts remain cautious, citing the pattern’s placement lacking conviction for significant bullish reversal”.
He added, “Technical analysis suggests that the Nifty’s near-term uptrend remains positive, with support levels observed at 22,000 – 21,950 and resistance at 22,300”.
The market exhibited sustainable upside momentum on February 27, supported by bullish indicators and staying above the near-term moving average.
In global markets, Asian stocks treaded cautiously on Wednesday ahead of a crucial U.S. inflation reading that could influence the Federal Reserve’s monetary policy trajectory.
Wall Street witnessed heightened bond sales activity in anticipation of key economic data releases. Australian equities saw marginal gains, while Hong Kong and Tokyo futures indicated slight movements.
Investors are navigating uncertainties surrounding the extent of Federal Reserve rate cuts, with expectations tempered to around 75 basis points for 2024.
Traders are exercising caution ahead of Thursday’s inflation data release and a series of central bank speeches.
The G-20 finance chiefs highlighted the global economy’s potential for a soft landing, citing faster-than-expected disinflation as an upside risk.
Fed Governor Michelle Bowman reiterated expectations of further decline in inflation, advocating for maintaining current interest rates, but signaled prudence regarding rate adjustments.
As the trading day progresses, market participants will closely monitor global developments and economic data releases for further cues on market direction and sentiment.
(With inputs from ANI)
