Stock market opens with uptick after consecutive declines
Oct 05, 2023
Mumbai (Maharashtra) [India], October 5 : The stock market, which witnessed a challenging start to the week with consecutive declines, saw an encouraging uptick on Thursday, offering respite to investors.
The Sensex opened the day with a gain of 363.29 points, starting at 65,523.70. Similarly, the Nifty saw a positive opening, up by 93.90 points, commencing the trading session at 19,530.00.
These figures reflected a turnaround from the previous day's downward trends.
Among the Nifty companies, 41 witnessed advances, while 9 companies reported declines. Notable gainers included BPCL, Hero Motocorp, Infosys, Ultra Cement, and Titan.
Conversely, Divi's Lab, Nestle India, Power Grid, Britannia, and Tata Consumer Products were among the top losers.
The Nifty index had hit a low of 19,333 the day before and formed a dragonfly Doji candlestick pattern, which indicated a bullish reversal.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Nifty hit a low of 19333 yesterday and made a dragonfly Doji bullish. The market is continuing that momentum. Today it will be important that the market sustain the rally for further upside momentum. For confirmation index should move above 19767 levels".
Market experts noted that today's performance would be crucial in sustaining the rally for further upside momentum. To confirm this trend, the index needed to breach the 19,767 level.
"Major large-cap stocks like Reliance, TCS, INFY, HDFC Bank, and HUL are showing strength from the bottom. The broader Open Interest (OI) range is 19200-19800. Focus on selected mid and small cap stocks along with large cap stocks on dips. India growth story to continue and in medium term we expect market to go up and touch new highs", said Aggarwal.
Several major large-cap stocks, including Reliance, TCS, INFY, HDFC Bank, and HUL, exhibited strength and resilience, signaling a potential recovery. The broader Open Interest (OI) range was observed to be between 19,200 and 19,800.
Analysts advised investors to focus on selected mid and small-cap stocks in addition to large-cap stocks when looking for opportunities on market dips.
They remained optimistic about India's growth story and expected the market to continue its upward trajectory, potentially reaching new highs in the medium term.
