Indian equity benchmarks opened higher on Monday, October 12, recovering at the start of the new trading week as investors assessed global market trends, movements in crude oil prices and the outlook for the upcoming earnings season.
The BSE Sensex soared more than 300 points and crossed 72,800, while the NSE Nifty50 rang the opening bell above 22,600, climbing a little over 100 points, as of 9:15 AM.
The positive opening came despite mixed signals from Asian markets, with investors weighing movements in energy prices and developments in global markets. Market participants will also monitor technical levels and stock-specific action as the earnings season gathers pace.
GIFT Nifty Signals A Positive Start
The GIFT Nifty pointed to a mildly positive opening for domestic equities, trading at 22,630, up 10 points, as investors assessed mixed global cues.
At around 9:01 AM, the Sensex was trading at 73,231.61, up 759.28 points or 1.05 per cent. The Nifty stood at 22,657.05, gaining 136.60 points or 0.61 per cent.
Asian markets delivered a mixed performance in early trade on Monday. South Korea’s KOSPI declined 2 per cent, while Hong Kong’s Hang Seng advanced 0.59 per cent. Japanese markets remained closed for a holiday.
The cautious mood comes ahead of the upcoming corporate earnings season, which is expected to influence stock-specific movements and broader market sentiment.
Wall Street Ends Higher, Technology Stocks Support Gains
US equity benchmarks closed higher on Friday, offering some support to global investor sentiment.
The Dow Jones Industrial Average advanced 0.83 per cent, while the S&P 500 gained 0.59 per cent. The Nasdaq Composite also ended in positive territory, rising 0.64 per cent.
Investors will continue to assess global market trends alongside geopolitical developments and changes in commodity prices to gauge the direction of domestic equities.
Crude Oil Prices Ease; Gold And Silver Gain
Crude oil prices declined after US President Donald Trump announced an energy ceasefire between Ukraine and Russia.
Brent crude’s December futures were quoted at $103.17 per barrel on the Intercontinental Exchange. Movements in oil prices remain important for Indian markets, given the implications for inflation, import costs and corporate profitability.
Meanwhile, precious metals moved higher. Gold futures rose 0.45 per cent, while silver futures gained 0.68 per cent.
Market Outlook: Nifty Faces Resistance Near 22,775
Shrikant Chouhan, Head of Equity Research at Kotak Neo, said benchmark indices had experienced a volatile week but managed to finish in positive territory. The Nifty gained 0.44 per cent over the week, while the Sensex advanced 562 points.
Among sectoral indices, Capital Markets and FMCG were the strongest performers, rising nearly 2.5 per cent. Realty and Metal stocks remained under pressure, declining more than 3.5 per cent.
Chouhan noted that the indices encountered resistance around 22,775 on the Nifty and 73,100 on the Sensex before correcting sharply. Buying interest subsequently emerged near 22,200 on the Nifty and 71,300 on the Sensex, helping the benchmarks recover some losses.
He cautioned that the broader technical structure remained weak, with the market continuing to form lower tops on daily and intraday charts. However, oversold momentum indicators leave room for a temporary recovery.
Nifty Support At 22,300; Bank Nifty Traders Watch 54,500
According to Chouhan, 22,300 is a crucial support level for the Nifty. If the index holds above this mark, it could recover towards 22,600, followed by the 22,800-23,000 range.
A decisive break below 22,300, however, could intensify selling pressure and pull the index towards 22,150-21,750.
For the Bank Nifty, the key support level is 54,500. If this level holds, the index could move towards 55,500, 55,800 and 56,000. A breach of this support could weaken sentiment and prompt traders to reassess existing long positions.
Trading Strategy: Caution Advised
Chouhan recommended that traders remain selective while the market consolidates. He said fresh buying could be considered near the lower support zone of 21,900-21,750, while weak long positions could be reduced if the Nifty rallies towards 22,800-23,000.
He added that a short-term recovery remains possible, but a sustained improvement in market sentiment would require a decisive move above key resistance levels. Traders should therefore monitor the important support zones closely.
With domestic benchmarks opening higher on Monday, investors will track whether the gains can hold through the session, alongside global cues, crude oil movements and the latest corporate earnings developments.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
