Bullish surge at market opening: Nifty rockets with gains, global momentum fuels optimism
Jan 11, 2024
Mumbai (Maharashtra) [India], January 11 : The stock market commenced its trading day on a positive note, sustaining the upward momentum from previous sessions.
Sensex opened at 71,940.43, up by 282.72 points, while Nifty began the day at 21,703.40, reflecting an increase of 84.65 points.
In the initial trading hours, 45 Nifty companies witnessed advances, while 5 experienced declines. Hero Motocorp, Axis Bank, Bajaj Finserv, HDFC Life, and Reliance emerged as the top gainers, contributing to the positive sentiment. Conversely, Dr Reddy, Infosys, HCL Technologies, Sun Pharma, and Wipro found themselves among the early top losers.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Analysing the Nifty 50 chart, a positive candle on the daily chart with a lower shadow indicated a false downside breakout of immediate support at 21,500 levels. This pattern suggested renewed buying activity and a bounce back from the 10-day EMA support at 21,550, signalling a positive trend".
He added, "Globally, Asian stocks mirrored the positive momentum observed in the US market. Japanese equities, particularly blue-chip stocks, opened higher, reaching levels not seen in over three decades".
Contributing factors included a surge in US tech shares and the depreciation of the yen against the dollar.
In the early trade on Thursday, Japanese Nikkei 225 rose by 1.40 per cent, Topix index by 1.47 per cent, South Korea's KOSPI by 0.28 per cent, Hong Kong's Hang Seng index by 0.35 per cent, and Australia's S&P/ASX 200 by 0.48 per cent"
On the US front, the Dow Jones Industrial Average gained 170.57 points, the S&P 500 rose by 26.95 points, and the Nasdaq Composite advanced by 111.94 points.
Oil prices experienced a slight increase in Asian trading amid escalating tensions in the Middle East and a surprise build in U.S. crude stockpiles. WTI crude traded at $71.24, down by 0.18 per cent, and Brent crude at $76.60, down by 0.26 per cent.
Gold prices saw an uptick supported by a weaker dollar ahead of a consumer inflation report, providing insights into the U.S. Federal Reserve's interest rate trajectory.
The US Dollar Index (DXY), measuring the dollar against a basket of six foreign currencies, traded down by 0.06 per cent at 102.30.
As the trading day unfolds, investors are closely monitoring global cues and economic indicators, positioning themselves in response to dynamic market conditions.
