The Indian stock market extended gains on Thursday as lower crude oil prices improved sentiment, with buying led by banking and financial stocks.
The Sensex traded over 400 points higher, while the Nifty 50 was trading above 25,300 level. The Bank Nifty index gained nearly 1% to scale above 61,000 level.
Broader markets outperformed, with the Nifty Smallcap 100 and the Nifty Midcap 100 indices trading over a percent higher each.
Among sectors, Nifty Realty, Nifty Private Bank, Nifty Metals and Nifty Media led gains, while losses were seen in Nifty IT and Nifty Pharma indices.
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 attract buying interest at lower levels, indicating underlying resilience.
According to Ponmudi R, CEO of Enrich Money, the 25,400 – 25,500 zone remains the immediate resistance band, and a sustained move above this range could strengthen the bullish momentum and pave the way for an advance towards the 25,600 – 25,800 zone.
“On the downside, 25,200 – 25,100 is expected to act as the immediate support zone, followed by the crucial support near 24,800. The RSI remains elevated near 80, indicating overbought conditions and the possibility of intermittent profit-booking,” said Ponmudi.
He believes the near-term outlook remains bullish, supported by buying interest at lower levels.
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