Indian benchmark stock market indices opened on a positive note on Thursday, reflecting a recovery in global market sentiment. At 9:40 am, the S&P BSE Sensex was up by 368.67 points, reaching 65,594.71, while the NSE Nifty 50 gained 100.10 points to reach 19,536.20. This surge in the broader market indices coincided with a decrease in market volatility.
The Nifty IT index led the sectoral gains, surging over 1.3 percent. Notably, heavyweight sectors such as Nifty Bank and Nifty Financial Services also posted gains, contributing to the market's overall positive performance. Realty stocks also made notable gains, adding to the broad-based market recovery.
The top five gainers on the Nifty 50 included BPCL, Infosys, TCS, ICICI Bank, and Titan. Conversely, Divi’s Laboratories, Power Grid, Sun Pharma, Britannia, and Nestle India were among the top losers.
Ameya Ranadive, a research analyst at Choice Broking, advised positional traders to set a stop-loss at the day's low of 19,333 and consider buying on dips as long as the price remains above this level. He emphasised the importance of monitoring immediate resistance levels at 19,500 to 19,600, while highlighting significant support levels at 19,300 to 19,200 for the Nifty.
Ranadive also noted that the Relative Strength Index (RSI) momentum indicator suggested a potential reversal from the oversold region, hovering around the 40.15 level. However, he pointed out that except for the FMCG and Information Technology sectors, all other indices had ended lower, with sectors such as auto, capital goods, power, PSU banks, healthcare, metal, and realty witnessing declines of 1-3 percent.
Given the absence of clear trends in both the Nifty and Bank Nifty, market participants were advised to exercise caution and adopt a more selective, stock-specific approach to their investments.
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