- Indian indices opened weak, but quickly recovered, turning positive.
- Global markets, especially tech, faced weakness over AI concerns.
- Crude oil prices eased; experts foresee Nifty’s positive trend.
Indian benchmark indices opened in the red on Monday, October 19, following weakness across Asian markets and a sharp sell-off on Wall Street in the previous session kept global sentiment subdued.
The BSE Sensex slipped more than 150 points and tested 74,550, while the NSE Nifty50 opened the session above 23,100, taking a hit of almost 50 points, as of 9:15 AM.
Investors are assessing developments around crude oil supplies, technology stocks and the outlook for interest rates, while technical indicators point to a positive near-term trend for domestic equities.
GIFT Nifty Signals Cautious Start
The GIFT Nifty indicated a subdued opening for domestic equities, with futures trading at 23,112 and carrying a negative bias. However, the benchmark indices moved higher in pre-open trade.
At around 9:05 am, the Sensex was trading at 75,112.11, up 382.84 points, or 0.51 per cent. The Nifty stood at 23,237.30, gaining 93.40 points, or 0.40 per cent.
Investors will track global market movements, changes in crude oil prices and sector-specific developments as the trading session progresses. The recent rally in domestic equities and the performance of information technology stocks are also likely to remain in focus.
Asian Markets Fall As AI Investment Concerns Weigh
Equity markets across Asia-Pacific traded sharply lower on Monday, following losses on Wall Street on Friday. Investors remained concerned about the pace and sustainability of investments in artificial intelligence infrastructure, triggering selling pressure in global technology stocks.
Japan’s Nikkei 225 declined 1.15 per cent, while South Korea’s Kospi slipped 0.12 per cent.
The weakness in Asian markets comes after a difficult session for US equities, particularly technology stocks, which could influence sentiment towards Indian IT companies.
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Wall Street Ends Lower, Nasdaq Drops Over 2%
US markets closed in the red on Friday, with technology stocks leading the decline.
The Dow Jones Industrial Average fell 0.34 per cent, while the S&P 500 declined 1.09 per cent. The Nasdaq Composite recorded a sharper loss of 2.14 per cent.
Investors remained cautious about the growth outlook for AI-related investments, with concerns over valuations and spending expectations weighing on technology shares.
Crude Oil Prices Ease On Russian Supply Developments
Crude oil prices declined in Asian trade after the US waived sanctions and tariffs on Russian oil, easing some concerns about global supplies.
Brent crude futures for December delivery were quoted at $108.10 per barrel, down 1.5 per cent.
The movement in oil prices remains important for Indian markets, given the country’s dependence on imported crude. A sustained decline could help ease inflationary pressures and reduce the import bill, although prices remain elevated.
Meanwhile, gold and silver futures traded higher, rising 0.26 per cent and 0.35 per cent, respectively.
Expert View: Nifty’s Near-Term Trend Remains Positive
Shrikant Chouhan, Head of Equity Research at Kotak Neo, said Indian benchmark indices recorded a strong recovery last week. The Nifty gained 2.8 per cent, while the Sensex advanced 2,250 points.
Among sectoral indices, IT emerged as the strongest performer, gaining more than 10 per cent during the week. Healthcare and FMCG, however, declined by over 1 per cent despite the broader market rally.
According to Chouhan, the market rebounded after finding support near 22,300 on the Nifty and 71,700 on the Sensex. He noted that the weekly chart had formed a long bullish candle and that the daily and intraday charts indicated the possibility of the uptrend continuing.
He also pointed out that the benchmarks had crossed and closed above the 20-day simple moving average (SMA), strengthening the positive technical outlook.
Chouhan said the short-term market structure remained constructive, but traders should consider a strategy of “buying on dips and selling on gains” rather than chasing advances.
For the Nifty, he identified 23,000 and 22,800 as important support levels, while 23,300 and 23,500 could act as resistance zones. A sustained move below 22,800, he cautioned, could weaken sentiment and prompt traders to reconsider their long positions.
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Bank Nifty: Key Support And Resistance Levels
For the Bank Nifty, Chouhan identified 55,000 and the 20-day SMA near 55,300 as key support levels. He said the positive trend could continue as long as the index holds above these levels.
On the upside, the banking index could move towards 56,300, 56,500 and 56,800, according to his assessment.
Investors will watch banking stocks alongside IT shares and global market developments to gauge whether the domestic market can sustain its recent recovery.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
