Nifty 50 and Sensex Soar Despite Geopolitical Concerns

Nifty 50 and Sensex Soar Despite Geopolitical Concerns
Nifty 50 and Sensex Soar Despite Geopolitical Concerns
Nifty 50 and Sensex Soar Despite Geopolitical Concerns
Nifty 50 and Sensex Soar Despite Geopolitical Concerns

Nifty 50 and Sensex Soar Despite Geopolitical Concerns

Nifty 50 and Sensex Soar Despite Geopolitical Concerns

Nifty 50 and Sensex Soar Despite Geopolitical Concerns

Equity benchmarks Nifty 50 and Sensex exhibited strong gains on Tuesday, October 10, demonstrating resilience against geopolitical worries stemming from the Israel-Hamas conflict. These gains were driven by a widespread surge in buying across various sectors, reflecting an improved domestic market sentiment.

Boost from Global Cues and Bond Yields

The positive momentum in domestic markets was influenced by favorable global cues and a decline in bond yields following comments from Federal Reserve officials concerning interest rates. As per Reuters, “Global stocks snapped higher on Tuesday, in line with a retreat in bond yields after Federal Reserve officials signalled the recent yield surge could justify caution on interest rates, while oil eased, but violence in the Middle East made for nervy trading.” Two Federal Reserve officials emphasized that “rises in long-term yields might negate the need for further hikes.”

Intraday Movements and Closing Figures

Nifty 50 commenced the day at 19,565.60, surpassing its previous closing figure of 19,512.35. Throughout the trading session, it reached its intraday high of 19,717.80 and a low of 19,565.45. Ultimately, Nifty 50 concluded the day at 19,689.85, marking an impressive gain of 178 points, equivalent to 0.91%. Meanwhile, Sensex initiated the session at 65,662.27, outperforming its prior closing figure of 65,512.39. It registered an intraday high of 66,180.17 and a low of 65,662.27. The closing figure for Sensex was 66,079.36, reflecting a substantial rise of 567 points, or 0.87%.

Mid and Small Caps Outshine

Mid and small-cap stocks outperformed the benchmarks, with the BSE Midcap index surging by 1.14% and the BSE Smallcap index ending 1.26% higher.

Record Highs and Market Capitalization

Notably, 234 stocks reached their fresh 52-week highs in intraday trading on BSE, including Bharti Airtel, Cholamandalam Investment and Finance Company, Coal India, DLF, and Zomato. Consequently, the overall market capitalization of BSE-listed firms escalated from approximately ₹316.2 lakh crore in the previous session to around ₹319.8 lakh crore, enriching investors by nearly ₹3.6 lakh crore in a single session.

Crude Oil Prices and Global Factors

Crude oil prices experienced a cooldown after surging over 4% in the preceding session. Brent Crude traded 0.24% lower at $87.94 per barrel.

Top Nifty Gainers and Losers

Among the Nifty 50 index constituents, 44 stocks witnessed gains, with Coal India (up 5.07%), Adani Ports (up 3.54%), and Bharti Airtel (up 2.54%) emerging as the top gainers. In contrast, IndusInd Bank (down 0.70%), Cipla (down 0.50%), and TCS (down 0.24%) were the top losers.

Sectoral Indices and Market Experts’ Insights

With the exception of the Nifty Healthcare index (down 0.15%), all sectoral indices concluded the day with gains. Notable performances were observed in Nifty Realty (surging 4.01%), Nifty PSU Bank (up 2.08%), and Nifty Metal (up 2.05%) indices. Nifty Bank rose 1.08%, and the Private Bank index advanced by 1.16%.

Expert Opinions on Market Trends

Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the Indian market rebounded due to the retreat in bond yields and positive global cues, driven by dovish remarks from Fed officials. He noted that the upcoming earnings season holds primary significance for the domestic market.

Ajit Mishra, SVP – Technical Research at Religare Broking, emphasized that Nifty has overcome the immediate hurdle of the short-term moving average (20 EMA), anticipating a test of 19,800. However, the sustainability of this move depends on the performance of heavyweights, particularly in the banking and IT sectors.

Technical Analysis Insights

Rupak De, Senior Technical Analyst at LKP Securities, identified an inverted head and shoulders pattern breakout on the hourly chart of Nifty. He predicted that, in the short term, the index would maintain its strength, potentially reaching the range of 19,850 to 19,900, with support at 19,600.

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, observed that Nifty had started forming higher bottoms and surpassed the previous swing high, signaling a reversal. He anticipated that the momentum indicator would align with price action soon, with a potential pullback to 19,778, followed by a higher stretch to 19,883. On the downside, 19,480 was identified as a short-term support level.

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