Benchmark stock market indices opened marginally higher on Tuesday as the global rally cooled after a period of strong gains.
The S&P BSE Sensex opened 45.39 points higher at 71,360.48 at 9:30 am, while the NSE Nifty 50 gained 15.30 points to trade at 21,433.95. The broader market indices opened in positive territory but saw muted gains amid cautious trade.
Most of the major Nifty sectoral indices were trading in negative territory, including Nifty Bank, Nifty Financial Services and Nifty IT. Nifty FMCG and Nifty Oil & Gas were among the ones that gained in early trade.The top five stocks on the Nifty 50 were Apollo Hospitals, Nestle India, Tata Consumer Products, ONGC and Coal India. On the other hand, the top drags were Hero MotoCorp, TCS, M&M, Bajaj Finserv and Hindaclo.Domestic markets have witnessed spectacular gains this month, supported by a dream rally that started after BJP’s electoral victories in key states. Favourable macroeconomic data, except for rising inflation, has also provided strong support to Dalal Street.
The US Federal Reserve’s policy stance and commentary – hinting at rate cuts in early 2024 – was another positive for investors, with foreign investors pumping billions into the domestic market.
While the global lull has led to correction in heavyweight stocks, analysts believe that domestic markets are poised to gain in the long term.
Ahead of today’s market opening, Deven Mehata, research analyst at Choice Broking, said, “The benchmark Sensex and Nifty indices are likely to open marginally lower on December 19 as trends in the GIFT Nifty indicate a flat to negative start.”
“Nifty can find support at 21,320 followed by 21,250 and 21,220. On the higher side, 21,500 can be an immediate resistance, followed by 21,650 and 21,700,” he noted.
“The Indian markets can consolidate in a range between 21,200-21,500 levels. Any move on either side will lead the market to the next move. For traders, we advise to buy on dips with strict stop loss of 21,200 levels. Investors holding any long positions from lower levels should keep trailing stop loss near 21,200,” Mehata added.
