Source : INDIA TODAY NEWS
Benchmark indices are likely to open higher on Tuesday, extending their recent winning streak as strong business updates from companies, steady crude oil prices and continued buying by foreign investors lifted market sentiment.
GIFT Nifty futures were trading at 24,546 at 7:53 am, indicating that the Nifty 50 could open above Monday’s closing level of 24,430.35.
The Nifty 50 and the BSE Sensex have climbed 2.4% over the last four trading sessions, closing at their highest levels in nearly 10 weeks. Banking stocks have led the rally after several lenders reported healthy loan growth in their first-quarter business updates.
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The market has also found support from Brent crude prices staying close to $72 a barrel, faster progress in monsoon rains and signs that foreign portfolio investors (FPIs) have returned as buyers after weeks of selling.
FPIS EXTEND BUYING STREAK
Foreign investors continued to support Indian equities on Monday.
Provisional exchange data showed FPIs bought Indian shares worth Rs 243.03 crore, which, if confirmed, would mark their fourth straight session of net purchases.
The return of foreign investors has improved market sentiment after months of sustained selling, although investors will continue to watch whether the buying trend continues during the earnings season.
CORPORATE EARNINGS IN FOCUS
Market participants will now keep a close watch on first-quarter business updates and earnings announcements, which are expected to guide stock-specific movements over the coming weeks.
Strong updates from banks have so far helped drive the broader market higher, and investors will be looking for similar trends across other sectors.
HDFC BANK LEADS MARKET RALLY
Rajesh Palviya, Head of Research at Axis Direct, said the Nifty extended its winning streak on Monday by rising 159 points, or 0.66%, to close at 24,430.
“The Nifty 50 extended its winning streak on Monday, advancing 159 points, or 0.66%, to close at 24,430, supported by broad-based buying across banking, auto, realty and metal stocks, which offset continued weakness in the IT pack. HDFC Bank emerged as the key driver, rallying more than 3.5% following a robust Q1 business update and helping both the Nifty and Bank Nifty register a fourth consecutive session of gains,” Palviya said.
He noted that banking, automobile, real estate and metal stocks supported the rally, while information technology stocks continued to lag.
GLOBAL MARKETS GIVE MIXED SIGNALS
Global markets offered mixed cues before Tuesday’s opening.
Wall Street ended at fresh record highs overnight. The Dow Jones Industrial Average crossed the 53,000 mark for the first time to close at 53,056. The S&P 500 rose 0.72%, while the Nasdaq gained 1.12%, led by strength in semiconductor stocks.
However, Asian markets traded lower on Tuesday morning as investors booked profits in technology shares and remained cautious over renewed concerns about shipping disruptions in the Gulf region.
South Korea’s Kospi index fell more than 4%, while Japan’s Nikkei slipped below the 70,000 mark.
Meanwhile, Brent crude continued to trade below $72 per barrel after OPEC+ approved an additional production increase of 188,000 barrels per day for August. Lower crude prices are seen as positive for India because they help reduce imported inflation and ease pressure on the country’s import bill.
KEY LEVELS TO WATCH TODAY
According to Palviya, the market outlook remains cautiously positive ahead of the weekly expiry.
He said the 24,500 level remains the immediate hurdle for the Nifty, while 24,300 is an important support zone.
“A sustained move below 24,300 could trigger profit booking towards 24,150. However, easing crude prices, resilient domestic liquidity and supportive global cues are likely to cushion downside risks, with a decisive breakout above 24,500 opening the path towards the 24,650-24,750 zone in the near term,” he said.
With foreign investors returning, banking stocks remaining strong and crude oil prices staying under control, investors will closely watch whether the benchmark indices can extend their four-session rally or face profit booking near record levels.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
– Ends
SOURCE :- TIMES OF INDIA
