Stock market opens with bullish momentum on positive global cues
May 10, 2024
New Delhi [India], May 10 : The stock market kicked off the trading day on a positive note, riding on the back of favorable global market indicators.
The Sensex, the benchmark index of the Bombay Stock Exchange (BSE), surged 345.94 points, opening at 72,635.24, while the Nifty, representing the National Stock Exchange (NSE), rose 27.65 points, starting at 21,985.15.
Among the Nifty companies, 38 witnessed advances while 12 declined in the opening session. Notable gainers included BPCL, ITC, Hero MotoCorp, Axis Bank, and Bajaj-Auto, while Infosys, LTI Mindtree, Larsen & Toubro (LT), Grasim, and Apollo Hospitals were among the top losers.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Technical analysis of the market suggests a possibility of further decline in the short term, with a crucial support level identified around 21,750 for the Nifty. Market analysts noted a concentration of Open Interest (OI) in Nifty put options at 21,500, indicating potential support. On the Call side, significant OI concentrations were observed at 22,200 and 22,300 levels, nearing all-time highs."
Meanwhile, Asian shares surged on Friday, buoyed by positive sentiment on Wall Street driven by favorable jobs data supporting the case for US rate cuts.
Equities in Japan, South Korea, Australia, and China recorded gains, with Hong Kong's Hang Seng Index reaching its highest level since September. US contracts remained largely flat after the S&P 500 index gained 0.5%, inching closer to its all-time high.
In the bond market, Treasury yields held steady following a successful USD 25 billion sale of 30-year US bonds. Emerging market currencies strengthened against the greenback.
In the commodities market, oil extended its gains for the third consecutive day, supported by key technical levels, while gold prices saw a modest increase following a notable jump on Thursday.
Overall, the positive momentum in the global markets coupled with the opening gains in the Indian stock market sets the stage for an interesting trading day ahead, with investors closely monitoring key technical levels and global developments for further cues.
