Indian equity benchmarks opened firmly on Wednesday. Sensex and Nifty traded higher in early trade due to positive market sentiment.
The Sensex opened higher on May 6 and was trading at 77,537.65 at 09:17 am, up 519.86 points, or 0.67%, from its previous close of 77,017.79. The 30-share index opened at 77,424.36 and touched an intra-day high of 77,675.01 and an intra-day low of 77,376.20 in early trade.
The Nifty 50 opened higher on May 6 and was trading at 24,183.85 at 09:18 am, up 151.05 points, or 0.63%. The index opened at 24171.00 and made a high and low of 24250.85 and 24164.55, respectively, in early trade.
The GIFT Nifty moved over 200 points higher to hover near the 24,310 mark. This upward movement is quite significant given that the Nifty 50 has failed to cross the 50-day Exponential Moving Average for the past eight sessions. While the RSI still continues to show the bearish momentum, experts say that cooling crude prices are expected to form a base that can help Indian benchmarks stage a meaningful comeback from here on.
The global sentiment took a turn for the better after U.S. President Donald Trump confirmed the slight deferral of Project Freedom. Project Freedom, a maritime security operation in the Strait of Hormuz, has been postponed for now so that Washington can assess the possibility of reaching a diplomatic deal with Tehran. Following this, Brent crude fell more than 1.4 per cent and settled near the $108 per barrel level, thereby curtailing inflationary concerns for oil-importing nations like India. Asian markets, including South Korea’s Kospi (which rose 5.6% and touched record highs), also surged higher as the S&P 500 and Nasdaq ended the last session at record highs.
The day will see quite a few top names release their quarterly corporate results. Leading companies including Bajaj Auto, Godrej Consumer Products, Shree Cement and Polycab India will be announcing their Q4 earnings today. However, a major focus will be on Bajaj Auto, where, along with quarterly performance, the board of directors are also likely to announce their share buyback plan. Investors will also react to the numbers announced by L&T and Hero MotoCorp along with the Nifty Bank index, which faces a significant hurdle at the 55,000 mark.
The primary focus for Nifty bulls will be on continuing with the recovery seen during the later half of the Tuesday session. Energy prices are now cooling, and a positive global sentiment is expected to support IT and banking shares in trade today. While the overall trend of the daily chart remains negative, sustained support above the gap-up opening level might usher a broader trend reversal in the Indian indices.
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