- Indian benchmarks gained; US jobs data eased rate hike fears.
- Global equities rose; crude oil eased, precious metals climbed.
- Despite recent weakness, market is oversold, hinting at rebound.
Indian benchmark indices were set for a stronger opening on Monday, tracking gains across global equities after softer-than-expected jobs data reduced expectations of further monetary tightening in the US.
The BSE Sensex climbed more than 400 points and inched closer to 72,350, while the NSE Nifty50 rang the opening bell above 22,500, soaring nearly 100 points, as of 9:15 AM.
GIFT Nifty Signals Strong Opening
The GIFT Nifty pointed to a firm start for domestic equities. Futures were quoted at 22,662.50, up 132 points, signalling that the Nifty50 could open sharply higher.
At around 9:08 AM, the Sensex was trading at 72,377.27, up 467.57 points or 0.65 per cent, while the Nifty stood at 22,532.40, higher by 110.45 points or 0.49 per cent.
The positive global backdrop comes after investors scaled back expectations of further US Federal Reserve rate hikes following weaker-than-expected jobs data.
Asian Markets Gain, Track Wall Street
Asian-Pacific markets traded higher on Monday, taking cues from Wall Street’s positive performance in the previous session.
Japan’s Nikkei 225 gained 2.58 per cent, while Australia’s S&P ASX 200 advanced 0.37 per cent.
US equities also ended the previous week on a positive note. The Dow Jones Industrial Average rose 0.49 per cent, while the S&P 500 gained 0.73 per cent. The Nasdaq Composite ended 1.19 per cent higher.
The yield on the benchmark 10-year US Treasury note stood at 5.24 per cent.
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Crude Oil Prices Ease
Crude oil prices declined after reports indicated that exports from West Asia had returned to pre-war levels during the final four days of September.
Brent crude December futures fell 0.64 per cent to $101.57 per barrel on the Intercontinental Exchange.
The movement in crude prices will remain an important factor for Indian equities, given its implications for inflation and the country’s import bill.
Gold, Silver Rise As Rate-Hike Bets Ease
Precious metals also gained in early trade as weaker US jobs data prompted traders to reduce expectations of additional rate hikes by the Federal Reserve.
Gold futures rose 0.62 per cent, while silver futures climbed 2.14 per cent.
Oversold Zone May Trigger Technical Pullback
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said Indian benchmark indices witnessed significant profit-booking during the shortened trading week, with the Nifty falling 3.10 per cent and the Sensex losing nearly 2,000 points.
Selling was broad-based, with Consumer Durables and Auto among the worst-performing sectors, declining 6.15 per cent and 5.85 per cent, respectively.
According to Chouhan, the Nifty’s weekly chart formed a long bearish candle, while the intraday trend continued to show lower highs and lower lows. However, the sharp correction has pushed the market into an “oversold zone”, raising the possibility of a technical rebound.
For the Nifty, Chouhan identified 22,200-22,100 as the key support zone and 22,500-22,600 as the immediate resistance area. A sustained move above 22,600 could take the index towards 22,800-23,000, while a break below 22,100 could intensify selling pressure towards 22,000-21,750.
For the Sensex, 71,300-71,000 remains the key support zone, while 72,200-72,500 is the immediate resistance range. A sustained move above 72,500 could extend the recovery towards 73,100-73,700. Conversely, a break below 71,000 could drag the index towards 70,700-70,000.
For the Bank Nifty, the analyst sees 53,800 as a crucial support level. Holding above this mark could pave the way for a recovery towards 55,000-55,500, while a decisive break below it could increase selling pressure towards 53,500-53,200.
Overall, Chouhan expects the short-term market structure to remain weak, but said the recent correction has taken the indices into oversold territory. Investors, therefore, may need to watch the key support levels closely for signs of a potential technical pullback.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
