At 09:45 hrs IST, the Sensex was up nearly 300 points or 0.4 percent at above 72,000 points, while the Nifty gained 90 points, climbing above 21,850
Domestic markets opened mildly positive on February 6, with BSE Sensex and NSE Nifty 50 up 0.33 percent, despite discouraging global cues.
Hawkish remarks from the Federal Reserve on the back of robust US economic indicators, leading to a likely delay in interest rate cuts, rising US bond yields, and the Dollar Index surge to its highest level in over a month weighed on the market. A mixed opening in the Asian markets added to the cautious sentiment at the start of the trading day.
Among individual stocks, Bharti Airtel, TCS, UltraTech Cement, Dr Reddy’s Labs, and HCL Tech are among the major gainers on the Nifty, while losers include Power Grid Corp, NTPC, Hindalco, Axis Bank, and SBI Life Insurance.
At 9:45am, the Sensex was up nearly 300 points or 0.4 percent at above 72,000 points, while the Nifty gained 90 points, climbing above 21,850. The Bank Nifty experienced a decline of about 90 points or 0.2 percent.
The US market ended approximately 0.5 percent lower after the US Fed swaps almost wiped out the odds of a March interest-rate move, and the likelihood of a May cut has also diminished. The UK, Germany, and France indices each declined by 0.2 percent.
“The Nifty’s immediate support lies at 21,650, followed by 21,500 zones, while resistance is expected at 21,850 and then 22,000 zones. Now, it has to maintain levels above 21,750 zones for an upward movement towards 21,850 and 22,000 zones. On the downside, supports are positioned at 21,650 and 21,500 zones,” Motilal Oswal Financial Services said in a note.
The index began this week with a breakdown of the low of the star candle, confirming a trend reversal for the short term. “Hence, traders are advised to stay cautious as the index might go through a corrective phase going ahead. In case such a scenario unfolds, then we could see a correction first up to 21,600, followed by a move towards the 4 DEMA, which is placed around 21,370. Traders are advised to stay cautious and prefer profit-booking on long positions. On the higher side, 21,950-22,000 will be seen as immediate resistance followed by last week’s high of 22,127,” Ruchit Jain, research lead at 5paisa.com, said.
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