Mumbai (Maharashtra) [India], November 25 (ANI): Domestic stock markets opened flat on Tuesday as indices stuck between selling by foreign portfolio investors (FPIs) and buying by domestic institutions. The indices continue to test record levels but have failed to sustain gains above the all-time high marks.
The Nifty 50 index opened at 25,998.50 with a gain of 39 points or 0.15 per cent, while the BSE Sensex opened at 85,008.93, gaining 108.22 points or 0.13 per cent.
Market participants noted that although the benchmark indices are approaching all-time high levels, they are unable to hold momentum and remain stuck close to the 26,000 level.
Ajay Bagga, Banking and Market Expert, told ANI that the Indian markets remain range-bound.
He said, “India markets remain stuck in a range with FPI selling and primary market raises as well as promoter and PE fund sales dampening liquidity and secondary market performance. FPIs are carrying a net short position of 85 per cent. The Rupee strengthened on RBI intervention on Monday.”
Bagga added that the RBI Governor’s recent statement on monetary policy is expected to support sentiment. “The RBI Governor’s statement that there is space for a rate cut in India on December 5th will boost rate sensitive sectors like auto, realty and financials. IT sector may be in for a rerating on the back of IT spends recovering globally,” he said.
In the broader market on NSE, the Nifty 100 opened flat with a 0.13 per cent gain, while the Nifty Midcap and Nifty Smallcap indices were also in the green during the opening trade.
Among sectoral indices, Nifty FMCG was down 0.01 per cent, and Nifty Media was up 0.15 per cent. Nifty Auto traded flat with a gain of 0.01 per cent, Nifty IT gained 0.20 per cent, and Nifty Pharma was up 0.13 per cent.
Technical analysts believe the market is facing strong resistance near the upper range.
Ponmudi R, CEO, Enrich Money, said, “Spot Nifty 50 is once again testing the same multi-month rising trendline that has rejected every breakout attempt over the last six months. The index closed at 25,959, right at the mid-point of its current range.”
He added that as long as Nifty holds above 25,900, the broader trend remains positive, with key support at 25,750.
“Only a decisive close above 26,150-26,180 will validate a breakout and open the path toward 26,250 and 26,350. Until this level is conquered, the index is likely to drift within a sideways-to-cautiously-positive band,” he said.
Meanwhile, global cues were supportive as US markets staged a strong recovery on Monday, with technology stocks recording their best day in six months.
Positive statements from US Federal Reserve members Waller, Daly and Williams supporting a December rate cut boosted investor sentiment. Asian markets also traded strongly on Tuesday morning. (ANI)
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