Indian equities open marginally higher amid cautious global cues
New Delhi, June 24
Indian markets opened in the green on Wednesday as the domestic indices started the trading session with marginal gains despite mixed signals from international peers.
The BSE SENSEX stood at 76,331.97 pts, up by 131.29 pts or 0.17 per cent. Similarly, the NSE NIFTY 50 stood at 23,828.05 pts, tracking a minor increase of 3.95 pts or 0.02 per cent.
Market experts pointed out that external pressures could influence the local trading trajectory. Vikram Kasat, Head Advisory, PL Capital, said, "For Indian markets, positives like a fall in crude prices and a small rebound in Software names may help indices stabilize after opening volatility. Participants may look at a probable bounce in Software stocks along with strength in stocks that have led the markets in June."
The opening trajectory followed varied trends across international indices. GIFT NIFTY traded up by 0.20 per cent at 23,857.00, while Japan's Nikkei 225 dropped 0.98 per cent and Taiwan Weighted slumped 2.40 per cent.
On the western front, US markets experienced notable declines in their previous session, where the S&P 500 fell 1.44 per cent to 7,365.46 and the Nasdaq dropped 2.08 per cent to 25,621.30.
At the time of filing, Brent Crude traded at USD 76.23, reflecting a decrease of 0.85 or (-1.10%). Gold showed the largest drop of USD 45.51 or (-1.11%). Lastly, Crude Oil sat down by 0.84, representing the steepest percentage decline among the three at (-1.15%).
The initial momentum, however, remains vulnerable. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the broader indices recently faced downward shifts below psychological marks.
Chouhan said, "Following a muted opening, the market saw Nifty and Sensex dip below the 24,000 and 76,800 levels, respectively. After breaking down, selling pressure intensified."
He added, "A long bearish candle on the daily charts and a lower top formation on intraday charts suggest further downside from the current levels."
Traders are closely watching specific technical thresholds to determine the short-term direction of the indices. Chouhan outlined the critical support and resistance levels that will guide intraday movements.
Chouhan stated, "For day traders, the key levels are 23,900 or the 50-day SMA (Simple Moving Average) level for Nifty. For the Sensex, the pivotal level would be 76,500. This will act as a trend decider level."
He mentioned that below this, the market could "slip till 23,640-23,575/75,500-75,300. On the flip side, if the index moves above 23,900/76,500, it could bounce back to 24,000-24,050/76,800-77,000."
— ANI
Reader Comments
Finally some green after yesterday's fall! But I'm watching crude oil prices - if they stay below $77, it's good for our economy. Hope the software stocks bounce back as experts suggest. 🙏
Markets opening higher but these gains are marginal. The real test will be if we can sustain above 76,500 Sensex and 23,900 Nifty. Otherwise, we might see further correction towards 75,300 levels. Better to stay light in positions for now.
I wish the article had more on which sectors are driving this bounce. Software might be helping, but what about banking and auto? Also, falling gold prices could mean shift in investor sentiment towards risk assets - that's a silver lining. 😊
For long-term investors, these minor corrections are actually opportunities. Nifty around 23,800 is still 15% up from last year. The fundamentals of Indian economy remain strong - FII inflows, stable government, and corporate earnings. Just avoid panic selling. 🔥
Interesting to see Indian markets decoupling from global trends in the short term. But with US tech stocks falling hard (Nasdaq -2%), I wouldn't be surprised if some selling pressure trickles in later. Let's see if FIIs continue buying.
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