The Indian stock market opened marginally lower on Thursday, amid profit booking after the recent run-up.
The Sensex opened 117.13 points, or 0.14%, lower at 81,762.27, while the Nifty 50 fell 41.55 points, or 0.16%, to open at 25,213.50. The Bank Nifty index opened at 60,801.85, up by 9.45 points, or 0.02%.
Broader markets outperformed, with the Nifty Smallcap 100 and the Nifty Midcap 100 indices trading over half a percent higher each.
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Among sectors, Nifty IT, Nifty Pharma, Nifty FMCG, Nifty Auto and Nifty Oil & Gas indices suffered losses, while gains were seen in Nifty Realty, Nifty PSU Bank, Nifty Media and Nifty Metal indices.
Globally, Asian markets traded mostly higher, while the US stock market rallied overnight, as gains in technology and chip stocks lifted Nasdaq over 1%.
Investors will focus on the October CPI inflation data scheduled to be released later today. A higher-than-expected inflation print could reinforce concerns over further repo rate hikes by the Reserve Bank of India (RBI), while a softer reading may offer some relief to market sentiment.
In the currency market, the Indian rupee opened 4 paise lower at 93.73 against the US dollar as compared with its previous close of 93.69 level.
“This FIIs vs DIIs position will set the market trend in the near-term. FIIs have already invested Rs 65,735 crore in Indian equities so far in November. This trend is likely to continue and has the potential to reach an all-time high number. Impressive earnings growth as evidenced by the good Q2 results and the macro relief from lower crude prices (Brent around $92) will support the rally,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments.
According to him, DIIs may continue profit booking putting brakes on the rally.
Meanwhile, crude oil prices edged lower, offering some relief on the domestic macroeconomic front, with the Brent oil price falling below $92 a barrel.
Among commodities, MCX gold price fell 0.3% to Rs 1,39,251 per 10 grams, while MCX silver rate was down by 0.92% at Rs 1,82,801 per kg.
Technical Outlook
Nifty 50 continues to maintain its bullish momentum, with the 25,400–25,500 zone emerging as the immediate resistance range.
According to Ponmudi R, CEO of Enrich Money, a sustained breakout above this zone could further strengthen the upward momentum and extend the ongoing rally.
“On the downside, 25,200–25,100 remains the immediate support zone, followed by the crucial support near 24,800. Overall, the near-term outlook remains bullish, although elevated RSI levels and significant Call OI concentration at higher strikes suggest the possibility of intermittent profit-booking and consolidation,” he added.
(More to come)
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