The Indian stock market commenced trading on a strong note Tuesday morning, with benchmark indices Sensex and Nifty posting notable gains. Early trade saw the BSE Sensex surge by 367 points, reaching 78,831.47, while the NSE Nifty advanced to 24,456.25, briefly touching a high of 24,462.15.
Market Driven by Global Cues and Peace Hopes
The positive sentiment was largely influenced by encouraging cues from Asian markets and renewed hopes for resolution in the US-Iran peace talks. This comes after a relatively subdued close on Monday, where the Sensex edged up 26.76 points and the Nifty gained 11.30 points.
Key Index Movers
- Adani Ports jumped 1.30% to Rs 1598, emerging as a top gainer among Sensex constituents.
- ICICI Bank advanced 1.01%.
- Other significant gainers included Axis Bank (0.91%), Bajaj Finance (0.78%), and Eternal (0.69%).
VK Vijayakumar, chief investment strategist at Geojit Investments Ltd, highlighted that the market remains susceptible to news flow, oscillating between optimism and caution. Reports of ongoing US-Iran discussions are particularly fueling hopes for de-escalation of the conflict.
Broader Market Performance and Crude Oil
Asian markets largely mirrored the positive trend, with Japan’s Nikkei 225 climbing 1.31% and South Korea’s Kospi soaring 2.15%. Hong Kong’s Hang Seng also saw a marginal gain of 0.06%. In contrast, Wall Street concluded Monday's session lower, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closing in the red.
Crude oil prices, with Brent crude around $95 and declining spot prices, reflect market confidence that the geopolitical conflict might be short-lived. However, Vijayakumar cautioned that a prolonged conflict could lead to another spike in crude prices, negatively impacting stock markets globally.
Technical Outlook for Nifty
From a technical perspective, Aakash Shah, technical research analyst at Choice Equity Broking Private Ltd, noted that the Nifty 50 index continues to hold above the 24,300 level, indicating a near-term positive bias. He identified immediate support for the index between 24,150–24,200, with resistance seen around 24,450–24,500. A sustained breakthrough above this resistance band could extend the current rally, while failure to hold these levels might result in range-bound movement.