Investors witnessed a continuation of the bullish trend, buoyed by favourable global cues and overall positive market sentiment. The upbeat performance of the stock market underscores the resilience and confidence in the financial landscape.
As the Sensex and Nifty opened in the green, market participants showed optimism about sustained growth and favourable economic conditions. The positive momentum reflects a combination of domestic factors and the influence of positive developments in the global economic landscape.
Among the Nifty companies, the market exhibited strength with 39 advances and 10 declines. Notable gainers included HDFC Life, Bajaj Auto, SBI Life, Hero Motocorp, and Tata Steel. Conversely, Eicher Motors, LT, Bharti Airtel, Coal India, and Infosys faced some selling pressure, emerging as the top losers.
Varun Aggarwal, founder and managing director, Profit Idea, said, “The benchmark equity indices are poised for a positive opening on Tuesday, with the GIFT Nifty, an early indicator of the Indian equity market, trading at 21,142, up 10 points or 0.05 per cent. The Indian equity indices reached record highs on Monday, driven by favourable global cues, despite facing some selling pressure at elevated levels. The Sensex briefly crossed the 70,000 mark for the first time, while the Nifty achieved a new peak at 21,026.10”.
Despite the overbought technical conditions, Tuesday is poised for continued strength among Nifty bulls. Technical analysis suggests robust support for corrective declines, and there is an anticipation of reaching 21,500 in the inter-month perspective.
Aggarwal said, “Despite overbought technical conditions, there is anticipation of continued strength among Nifty bulls on Tuesday. Technical analysis suggests robust support for corrective declines”.
Aggarwal said, “When considering market sentiment, fundamental factors, and technical analysis, there is a collective indication that Fear of Missing Out could propel the Nifty to 21,500 in the inter-month perspective. Wall Street is exhibiting bullish momentum, with the S&P 500 reaching a new high in 2023”.
“Gold prices saw an uptick on Tuesday after touching a three-week low in the previous session. This rise is attributed to a weakening dollar, while investors are eagerly awaiting key U.S. inflation data and major central bank policy meetings for insights into potential interest rate changes”, added Aggarwal.
Market sentiment, fundamental factors, and technical analysis collectively indicate a prevailing Fear of Missing Out (FOMO), driving the Nifty to new highs. The bullish momentum extends beyond Indian markets, with Wall Street’s S&P 500 hitting new records in 2023.
In parallel, gold prices experienced an uptick on Tuesday following a recent dip. This rise is attributed to a weakening dollar, and investors are eagerly awaiting key U.S. inflation data and major central bank policy meetings for insights into potential interest rate changes.
As the market charts new territories, investors are navigating a landscape of optimism, with eyes on both domestic and global cues that shape the trajectory of financial markets.
The records set in the opening minutes suggest that the positive sentiment is holding firm, setting the stage for another day of dynamic trading on Indian bourses.