Sensex, Nifty Open Higher; Financials, IT Lead Cautious Market Optimism

Indian markets started the week in the green as domestic equity benchmarks registered modest gains in early trade.

The BSE SENSEX stood at 77,202.86 points, up by 102.39 points or 0.13 per cent. Simultaneously, the NSE NIFTY 50 stood at 24,095.00 points, gaining 39.00 points or 0.16 per cent.

Market experts attributed this resilience to a combination of domestic stability and institutional inflows. Vinit Bolinjkar, Head of Research at Ventura, noted that the domestic indices benefited from institutional participation in the preceding sessions.

He further noted the trajectory of the market, pointing towards specific sectors that might drive growth in the coming days.

Why are Indian markets expected to see a range-bound upside despite steady global cues?

"Given steady global cues, easing crude and a resilient domestic macro backdrop, expect a cautiously positive near-term outlook: Range-bound upside with sectoral leadership from financials, tech and select cyclicals, but keep an eye on global risk sentiment and earnings cues for directional conviction," Bolinjkar added.

The early momentum comes on the back of mixed international cues. In the US market, Dow Jones Futures traded up by 0.13 per cent at 51,944.92 points, while the S&P 500 and Nasdaq closed their previous sessions down by 0.05 per cent and 0.24 per cent, respectively.

In the Asian zone, the Hang Seng advanced by 2.05 per cent and the Taiwan Weighted climbed 1.29 per cent, even as the Nikkei 225 dropped 0.78 per cent and the KOSPI fell 2.43 per cent.

Meanwhile, the commodities market displays mixed performance across key assets. At the time of filing, Brent Crude stood at $72.33, reflecting a positive movement with a gain of $0.34 or a 0.47 per cent increase.

At the same time, Crude Oil also gained momentum, standing at $69.89 after gaining $0.66 or 0.95 per cent.

In contrast, Gold has experienced a downward trend, trading at $4,067.80, dropping by $19.21 or 0.47 per cent.

From a technical standpoint, the market maintains its position within a specified range, according to analysts. Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted the critical support and resistance zones that traders need to monitor.

"Technically, the market continues to trade in a defined range. On the downside, support is placed near the 50-day SMA at 23,800/76,200, while persistent selling pressure is visible in the 24,200-24,250/77,800-78,000 zone," Chouhan said.

Conversely, he warned of potential corrections if the indices fail to sustain these levels, stating that a breach below 24,000/77,000 may drag the index towards 23,800/76,200, with further weakness potentially extending to 23,650/75,700.

(With inputs from ANI)