The Indian stock market witnessed a positive opening today, with the Nifty opening closer to 22,750. However, minor profit booking was seen from higher levels, driven by selling pressure in Reliance and IT stocks. On the other hand, Bank Nifty continued its positive momentum, with strong performances from ICICIBANK and HDFCBANK.
Sectoral indices such as Realty, Metal, Auto, Financial Services, Infra, and Banking showed superior relative strength, indicating that the momentum is likely to continue. Conversely, IT, Media, and FMCG sectors are expected to underperform in the near future.
From a global market perspective, the Dollar Index remains stable around 104.15, which is a short-term positive sign. US 10-year yields have been trading at elevated levels of 4.40%, while Brent Crude Oil prices are hovering around $91 a barrel, raising concerns from an Indian perspective.
The upcoming US CPI data is crucial as it will impact the Fed’s policy actions. A softer inflation rate could prompt the Fed to cut rates soon, while a high inflation number may delay the rate cut plan.
In terms of key Nifty levels, traders are advised to be cautious as the election dates approach and Brent Crude oil prices rise. Strong support lies around 22,480-22,500, with resistance at 22,830-22,870. Any sustained move above 22,870 could lead to a rally towards 22,980-23,030.
For Bank Nifty, the sentiment remains positive, with HDFCBANK, ICICIBANK, and Indusindbk showing volatility. The index has formed a Higher Top Higher Bottom pattern, indicating a buy on dips strategy. Crucial support levels are at 48,300-48,400, with resistance at 49,100-49,250.
Overall, the market sentiment is bullish, with Nifty PCR at 1.05 and Bank Nifty PCR above 1.15. Key sectors and stocks in momentum include IciciBank, Apollo Hospital, Bajaj Finserv, BEL, and others.
In terms of FII and DII data, FIIs have been selling in the cash market, while DIIs have been buying. FIIs have a long-short ratio of 51% in index futures, indicating a positive outlook. On the stock futures and options front, FIIs have been active buyers.
Overall, the market is showing signs of strength and positive momentum, with traders advised to keep an eye on key support and resistance levels for potential trading opportunities.
