Mumbai: The domestic benchmark indices traded almost flat early on Wednesday, after the stock market experienced a strong upward movement as the US trade tariff tensions eased.
After a positive opening, the Sensex and the Nifty were almost flat. At around 9.31 am, Sensex was trading at around 78,595.81, up marginally, while the Nifty was at 23,769.80, up almost 30 points or 0.13 per cent.
HDFC Bank, Infosys, Oil and Natural Gas Corp, Tata Consultancy Services and Bharat Petroleum Corp added to the Nifty 50 index.
On the other hand, Asian Paints, Larsen and Toubro, Titan and Nestle India weighed on the Nifty 50 index.
On NSE, nine sectors advanced, three declined out of 12. The NSE Nifty FMC declined the most, and the NSE Nifty Oil & Gas rose the most. The BSE Midcap and Smallcap indices were trading higher in early trade.
According to market watchers, after a positive opening, Nifty can find support at 23,600. On the higher side, 23,800 can be an immediate resistance, followed by 23,900 and 24,000.
After remaining net sellers for the 23 sessions, the foreign institutional investors (FIIs) turned net buyers on February 4, as they bought equities worth Rs 809 crore. On the contrary, 35 domestic institutional investors (DIIs) turned net sellers after remaining net buyers for the last 35 sessions, as they sold equities worth Rs 430 crore.
The strong buying interest helped the Nifty index close above the 23,700 mark. Additionally, global markets traded positively.
According to Sameet Chavan of Angel One, the US decision to pause tariffs triggered a strong recovery from lower levels in U.S. futures overnight, setting a positive tone for Asian markets.
“While the momentum remains positive, key overhead resistance levels need to be monitored at 23900 (89 DEMA), 24000 (200 DSMA), and 24250 (previous swing high),” he mentioned.
After a robust Union Budget, all eyes are on the RBI’s monetary policy committee (MPC) meeting on February 7 where a rate cut is expected.
(IANS)
