Sensex, Nifty open mixed following global cues
Mumbai, Aug 4
Domestic equity market benchmarks witnessed a mixed start on Tuesday following a late-session increase in the previous session due to the introduction of a new closing auction session framework and mixed global cues.
Sensex opened nearly 500 points or 0.63 per cent higher at 79,132.97, while Nifty slipped below the 24,750 mark, declining 70.4 points or 0.28 per cent.
Sector-wise, real estate, cement, IT, FMCG, auto, and banking stocks were under pressure as Nifty Realty, Nifty Cement, Nifty IT, Nifty FMCG, Nifty Auto, and Nifty Private Bank declined by up to 1.5 per cent. In contrast, Nifty Metal was the only index that was trading higher in early deals.
Analysts said markets are likely to remain range-bound, with stock-specific action dominating trade as investors assess global developments and await fresh macroeconomic triggers.
According to them, global markets remain cautiously positive as investors continue to evaluate the latest US corporate earnings and the interest rate outlook following last week's Federal Reserve policy decision.
With no major adverse global triggers overnight, investors are expected to closely track international cues and domestic developments, they said.
From a technical perspective, analysts see the 24,450-24,500 zone as immediate support for the Nifty, while 24,750-24,800 remains a key resistance band, the analysts said, adding that a sustained move above the resistance zone could extend the ongoing rally, while any decline towards support levels is expected to attract buying interest and keep the broader trend positive, they said.
"The overall market setup continues to remain constructive, backed by strong institutional participation, favourable global cues and improving technical momentum," the analysts noted.
On the commodities front, Brent crude -- the international oil benchmark -- rose more than 1 per cent to near $85 a barrel, while US West Texas Intermediate (WTI) crude gained 1.17 per cent to $81.28 a barrel.
Asian markets traded mixed with major indices like Japan's Nikkei declining 0.6 per cent, Hong Kong's Hang Seng marginally lower and South Korea's Kospi falling more than 1 per cent. However, China's Shanghai Composite and Indonesia's Jakarta Composite traded in positive territory.
Overnight, Wall Street ended higher with the S&P 500 gaining 1.48 per cent and the tech-heavy Nasdaq advancing more than 2 per cent.
— IANS
Reader Comments
Finally some movement in metals! 📈 But the real concern for me is why IT and banking are under pressure. With the rupee hovering around the current levels and FIIs having a mixed approach, retail investors need to be careful. Let's see how the new closing auction session plays out in the coming days.
Hmm, 24,450-24,500 support zone seems a bit far right now. As someone who's been tracking the markets since last year's Diwali rally, I think we're in a waiting game. The analysts are right about range-bound movement. Best approach for small investors like us? Just SIP and forget. 💰
Good to see the Indian market holding its ground despite global fluctuations. The resilience of the Indian economy is truly impressive. Though I'm based in Toronto now, I closely track the Indian markets as my parents are still invested there. The technical levels mentioned seem sound - 24,750-24,800 will be crucial to watch.
Oil prices creeping up to $85 is concerning 🤔. With petrol already costing an arm and a leg in our cities, this can trigger inflation concerns which could impact RBI's next moves. The market construct might be positive, but let's not ignore the macro picture. Also, 0.63% up on Sensex but Nifty down? Ek tarfa hai yeh!
Rational analysis here - 'mixed opening' is the key phrase. The closing auction framework change is an interesting development. Let's see if it brings more stability or creates arbitrage opportunities. The institutional participation backing the market is a strong positive signal in the medium term.