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Stock Market Shows Resilience As It Opens With Upward Momentum

10:00 AM Oct 12, 2023 IST | 8PM News Desk
stock market shows resilience as it opens with upward momentum
Stock market shows resilience as it opens with upward momentum

Mumbai (Maharashtra) [India] : The stock market opened the day with a promising green tint before progressively picking up momentum, exhibiting resilience and determination to move upward on this Thursday morning.

The Indian stock market began the day with modest gains as the Sensex opened 61.27 points higher at 66,478.35, while the Nifty exhibited a marginal rise of 1.05 points, opening at 19,813.05.

Among the Nifty-listed companies, there were 33 advancing stocks, 16 declining ones, and 1 that remained unchanged.

The leading gainers in the Nifty firms included BPCL, IndusInd Bank, Adani Enterprises, Adani Ports, and Hindalco, while the top losers at the opening were TCS, Dr. Reddy, Nestle India, Tech Mahindra, and Bharti Airtel.

Market analysts observed that despite the concerning data on higher wholesale inflation, Dow Jones managed to make gains, largely attributed to the retreat in treasury yields.

Interestingly, the ongoing Israel-Palestine conflict seems to have a diminishing impact on the market, as it continues to forge ahead.

Varun Aggarwal, founder and managing director, Profit Idea, said, ‘Dow Jones went up despite higher wholesale inflation data as treasury yields retreat. Market is not giving much weightage to Israel war & moving up. The positive impact on Indian equities is that it was already outperforming & has started to rise again. Market breath looks good & we can witness good momentum in stocks’.

‘Many mid & small cap stocks saw good rally in yesterday’s session. Expect this momentum to continue. Nifty larger time frame target remains 20466 in short term & in medium term expect 21234-21410. Open Interest (OI) data has shifted. Heavily put writing at 19300-19500 levels. Bulls are creating a base to take markets up. Significant call writing at 19800-20000 is short term hurdle. Broader range is now 19500-20000 on Nifty’, added Aggarwal.

The positive effect on Indian equities is apparent, as it had already been outperforming and has now resumed its upward trajectory.

The overall market sentiment appears to be buoyant, and it is anticipated that stocks will maintain their momentum. In the previous session, numerous mid and small-cap stocks experienced significant rallies, and this is expected to persist.

In terms of larger time frame targets, the Nifty is poised to reach 20,466 in the short term, while the medium-term outlook suggests figures of 21,234 to 21,410.

Options data indicates a noticeable shift in trends. There is substantial put writing at the 19,300 to 19,500 levels, indicating that the bulls are actively laying the groundwork for an upward push.

However, a notable hurdle in the short term appears to be substantial call writing at the 19,800 to 20,000 levels. As a result, the broader trading range for the Nifty seems to be within the 19,500 to 20,000 range.

Market enthusiasts and investors are keeping a close watch on corporate earnings, especially with TCS reporting a buyback. The earnings season has commenced on a positive note, which has added to the market’s overall optimism.

Aggarwal said, ‘Focus remain on results with TCS reporting buyback. Earning season have kicked off on positive note. We remain bias towards Indian Economy. IT, Media, Metal, FMCG, Banks stocks are looking good’.

The prevailing sentiment remains in favour of the Indian economy, with IT, Media, Metal, FMCG, and Banks sectors looking particularly robust.

Market participants are eagerly tracking the unfolding dynamics and expect to witness further positive developments in the stock market.

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