Mumbai, India – In today's trading session, the Indian stock market witnessed a positive trend, with both the Sensex and Nifty indices showing gains. The Sensex, the benchmark index of the Bombay Stock Exchange (BSE), climbed by 180 points. The Nifty 50, the flagship index of the National Stock Exchange (NSE), edged closer to the 25,900 mark.
Market Drivers
The gains were primarily fueled by positive momentum in auto, metal, and fast-moving consumer goods (FMCG) stocks. These sectors experienced renewed investor interest, contributing significantly to the overall market upswing.
Sectoral Performance
The Nifty MidCap index also saw an increase of 0.15%, while the Nifty SmallCap index rose by 0.12%, indicating broad-based market participation. Metal sector has performed well with the index rising over 2 and a half percent. All the stocks on the metals index traded with gains.
Market Sentiment
Market sentiment was largely positive, driven by a combination of domestic and global factors. A weakening US Dollar, coupled with robust auto sales data and encouraging quarterly results from leading automakers, boosted investor confidence.
Global Cues
Asian markets exhibited a mixed trend. Hong Kong's Hang Seng and South Korea's Kospi closed in positive territory, while Japan's Nikkei 225 index ended in the red. European markets were trading in the green. However, US markets closed negatively on the previous day.
Expert Views
Shrikant Chouhan, Head of Equity Research at Kotak Securities, suggested that the current market texture is weak but oversold, potentially leading to a pullback rally in the near future. He identified 84,400 as a key support zone for the Sensex, with 85,000 and 85,200 acting as immediate resistance levels.
Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates Ltd., noted that the Nifty 50 index closed below the 25,890 level, indicating further weakness. He pointed to 25,500 – 25,300 as the next major support zone, with 26,200 and 26,325 acting as strong hurdles.
Rupee Movement
The Indian rupee weakened against the US dollar, falling to 90.15 in early trade. The rupee's decline was attributed to various factors, including continuous foreign fund outflows and a general weakness in Asian currencies. The rupee also slumped to an all-time low of 90.25 against the US dollar in intra-day trade.
FII Activity
Foreign Institutional Investors (FIIs) continued their selling spree, offloading stocks worth ₹656 crore. This persistent selling pressure has contributed to the market's volatility in recent sessions.
Market Outlook
While the market showed positive momentum today, experts advise traders to remain cautious. The derivatives data indicates a sideways setup, with strong overhead supply at the 26,000 strike for the Nifty. Investors should closely monitor global cues, FII activity, and key technical levels to make informed decisions.
