Stock Market Update: Sensex Rises 300 pts at Open, Reclaims 60K; Nifty Above 17,900; Tech M Up 3%

Sensex Today: Indian markets opened on a positive note in Monday’s trade on the BSE amid strong global cues. Frontline indices Nifty50 rose over 50 points to trade above 17,900 levels and the S&P BSE Sensex climbed over 250 points to trade at 60,048 levels.

Broader markets, too, were upbeat in trade as Nifty Midcap 100 and Nifty Smallcap 100 rose up to 0.9 per cent.

Tech Mahindra, Bajaj Finserv, M&M, Dr Reddy’s, Infosys were top contributors to the benchmark indices. Meanwhile, Hindustan Unilever, HDFC, Asian Paints, Kotak Bank weighed on the indices.

All sectors opened in a positive territory with Nifty Media and Nifty IT indices leading the pack.

Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking Ltd., said: “On the technical front, Nifty a long negative candle on the daily chart with a minor lower shadow while ended with a long bull candle on the weekly chart, indicating volatility is likely to rule in the market. However, with positive market breadth, one can expect the Index to challenge the psychological level of 18,000. Nifty is likely to head towards 18,300 in September 2022 as it is the swing high of January 2022. Nifty also registered a bullish golden crossover in August (50-DEMA crossing above 200-DEMA) implying a major shift of momentum from a medium-term perspective. Nifty also has given a conclusive breakout from eight months’ falling channel signalling the end of the corrective phase and the breakout is well supported by sequential improvement in market breadth. Hence during the day index is likely to open on a flat to slight gap-up opening and is likely to continue with its positive momentum and challenge 18,000 levels. Thus one can use dips towards 17,775-17,735 for creating a long position for the target of 18,300 in the near term.”

Rupee

The rupee appreciated by 12 paise to close at 79.57 against the US dollar on Friday, tracking positive domestic equities and foreign fund inflows.

Global Cues

Asian share markets made cautious gains on Monday on hopes a key reading on US inflation will show some cooling, while the U.S. dollar was restrained by the risk of higher European interest rates and Japanese intervention.

Tokyo stocks opened higher on Monday, tracking rallies on Wall Street as investors came to terms with the prospect of more central bank interest rate hikes. The benchmark Nikkei 225 index was up 0.96 per cent, or 269.59 points, at 28,484.34 in early trade, while the broader Topix index was up 0.75 per cent, or 14.83 points, at 1,980.36.

US stocks rallied on Friday, with the major indexes recording their first weekly gain in four weeks as investors went on a buying spree, shrugging off concerns about the economic outlook.

Oil prices slipped during Asian trade on Monday as the prospect of further interest rate hikes in the United States and Europe to quell inflation and the imposition of strict COVID-19 restrictions in China overshadowed the global demand outlook.

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