The Bharat stock markets, represented by the benchmark Nifty and Sensex, opened the week on January 29 with a significant surge, recording gains of over 1.5 percent each. This upward movement was attributed to various factors, setting the stage for what experts anticipate to be a volatile week, marked by key events such as the Interim Budget and the US Federal Reserve’s monetary policy meeting.
Market Performance at Mid-Day:
As of 12:47 pm, the Sensex was up by 1,064.50 points (1.51 percent) at 71,765.17, and the Nifty had risen by 335.20 points (1.57 percent) to reach 21,687.80. The market witnessed positive momentum, with 2,070 stocks registering gains, 1,223 experiencing declines, and 111 remaining unchanged.
Factors Driving the Rise:
- Positive Asian Cues: The positive momentum in the Indian markets was supported by a similar trend in Asian markets. Key indices such as Japan’s Nikkei 225, Hong Kong’s Hang Seng, and South Korea’s Kospi all saw gains of around 1 percent.
- Heavyweights’ Performance: The surge was also fueled by strong performances from heavyweight stocks. Companies like Reliance Industries achieved a 5 percent increase, reaching a new record high. Financial giants such as HDFC Bank, Axis Bank, Kotak Mahindra Bank, and ICICI Bank contributed to the positive movement.
- Broad-Based Gains: The market rally was not limited to specific sectors, as nearly all sectors, excluding information technology, showed gains. Sectors such as banks, energy, infrastructure, power, automobile, metals, and capital goods posted increases ranging from 1 to 4 percent.
- Broader Market Performance: Both smallcap and midcap indices also witnessed positive movements, surging by around 1 percent each.
Key Levels and Expert Insights:
During this Budget week, known for its volatility, technical analyst Sameet Chavan emphasized caution. He pointed out that the level around the psychological mark of 21,000, coinciding with the 50-day simple moving average (SMA), is crucial. Chavan suggested that negative surprises from the Budget or the Federal Open Market Committee (FOMC) meeting could lead the Nifty towards 20,800 or even the bullish gap of 20,500.
On the bullish side, resistance is anticipated near 21,500 and the week’s high of 21,750. Chavan emphasized the likelihood of high volatility, especially on the budget day, advising traders to exercise caution and avoid undue risks until there is greater clarity.
It’s important to note that the views and investment tips expressed by experts are their own and not necessarily reflective of the website or its management. Users are advised to consult certified experts before making any investment decisions.
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