Stock market opens on a high note despite global incertainty
Feb 09, 2024
Mumbai (Maharashtra) [India], February 9 : The stock market commenced trading on Friday on a positive note, with both the benchmark indices, Sensex and Nifty 50, opening higher.
The Sensex surged by 106.76 points, starting at 71,535.19, while the Nifty 50 gained 81.95 points, opening at 21,747.10.
This uptick came despite mixed global cues and uncertainty in Asian markets.
The morning session saw 28 advances and 22 declines among the Nifty companies.
Notable gainers included Apollo Hospitals, TCS, Reliance Industries, Titan, and Sun Pharma, while BPCL, Hindalco, ONGC, UPL, and Coal India emerged as the top losers.
Varun Aggarwal, founder and managing director, Profit Idea, said, "This bullish start contrasts with the previous day's downturn, which saw the Sensex plummet by 723.57 points to close at 71,428.43, and the Nifty 50 slipping by 212.55 points to settle at 21,717.95. The decline on February 8 was attributed to the Reserve Bank of India's decision to maintain key policy rates unchanged".
Technical analysis indicates a potential short-term downward trend for the Nifty 50, with support levels at 21,550 - 21,500 presenting buying opportunities.
However, a drop below 21,690 could signal further declines towards 21,500, while staying above 21,700 may indicate a near-term recovery.
Meanwhile, in Asian markets, trading remained subdued as many markets were closed for public holidays. Futures contracts for the Hang Seng Index suggested a third consecutive daily decline, reflecting volatility amid China's efforts to stabilize its equity market.
In the US, the S&P 500 closed marginally higher on Thursday, nearing the 5,000 index point threshold, while Japanese stocks traded within tight ranges supported by a weaker yen.
Despite these global uncertainties, the Indian stock market's positive opening on Friday provides a glimmer of optimism amid the prevailing volatility in international markets.
Investors are closely watching developments both domestically and internationally for cues on future market direction.
