The stock indices commenced the trading week on a positive note, signaling a push towards a favorable trajectory. The Sensex saw an opening gain of 73.11 points, starting at 72,517.06, while the Nifty began 42.50 points higher at 22,082.55. Among Nifty companies, 38 witnessed advancements while 11 experienced declines in the initial session.
Several companies showcased notable performances in the opening session, with Wipro, SBO Life, M&M, AdPorts, and Bajaj Auto emerging as the top gainers, exhibiting robust upward momentum. Conversely, Power Grid, Britannia, SBI, Reliance, and NTPC faced losses, positioning them as the top losers during the initial trading hours.
Anticipated to embark on a cautiously optimistic trajectory, the domestic equity indices are influenced by mixed signals from global markets. Last week, Asian markets displayed a mixed performance, while US stocks closed lower amid fading expectations for immediate interest rate cuts by the US Federal Reserve.
Investors are closely monitoring various market catalysts, including domestic macroeconomic data, US Fed minutes meeting, crude oil prices, foreign capital inflows, and global market trends. Varun Aggarwal, founder and managing director of Profit Idea, noted the Indian markets' resilience amid volatility, extending gains for the fourth consecutive session. The Sensex climbed 376.26 points to close at 72,426.64, while the Nifty 50 rose 129.95 points to settle at 22,040.70, driven by a favorable Q3 earnings season.
In the US, producer prices surged more than anticipated in January, primarily fueled by robust increases in service costs, sparking concerns in financial markets about potential acceleration in inflation. Asian shares commenced trading with a mixed tone following Wall Street's downturn amid indications of stickier-than-expected US inflation. Chinese stocks are expected to open strongly after a week-long holiday, while Japanese equities witnessed fluctuations.
Technically, the Nifty-50 closed above the crucial 22,000 level, encountering potential resistance near its all-time high, while hourly support is expected around 21,900 levels. Key technical indicators suggest an overbought scenario on hourly charts, indicating a likelihood of consolidation from current levels. Market participants will closely monitor key indicators and news flows to navigate market volatility and capitalize on emerging opportunities as trading progresses.
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