Stock market opens with early volatility but maintains positive momentum
Oct 18, 2023
Mumbai (Maharashtra) [India], October 18 : The stock market started the trading day with some early volatility, as the Sensex opened flat in the green, briefly dipped into the red, but subsequently managed to regain positive momentum. The market showcased its resilience as it navigated the initial fluctuations.
The Sensex initiated the trading session with a modest gain of 24.81 points, opening at 66,444.11. Simultaneously, the Nifty, a key stock index in India, also saw a positive opening, with an initial gain of 28.70 points, opening at 19,834.
Among the Nifty-listed companies, 33 marked advances, while 16 reported declines, reflecting a mixed yet cautiously optimistic market sentiment.
The top gainers among Nifty companies during the early trading hours included Cipla, Dr. Reddy, Hindalco, Sun Pharma, and Divi's Lab. In contrast, Bajaj Finance, Power Grid, LTI Mindtree, ICICI Bank, and HDFC Bank faced some early losses.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Nifty is consolidating after crossing 19767 crucial resistances. Broader market is showing good strength. Many mid and small cap shares are looking attractive and going up. IT, Media, Metals, FMCG, Banks, Reality stocks are looking good. Open Interest (OI) data is shifting on upside. Put writing is strong and forming the base. Expect market to consolidate. Bias remains bullish, risk defined strategies remains best".
Nifty is currently in a consolidation phase after successfully crossing the crucial resistance level of 19,767. The broader market displayed notable strength, with many mid and small-cap shares showing an upward trajectory, presenting attractive opportunities for investors.
Key sectors that stood out in the early trading session included Information Technology (IT), Media, Metals, Fast-Moving Consumer Goods (FMCG), Banks, and Realty stocks, all of which displayed positive performance.
Market data indicated that Open Interest (OI) was shifting upwards, with strong put writing forming a solid base.
Experts anticipate the market to continue its consolidation, with a bullish bias prevailing. In this scenario, risk-defined strategies are seen as the best approach for traders and investors to navigate the market efficiently.
Despite ongoing external uncertainties, the Indian market appears resilient and shows promising signs across various sectors. As the trading day progresses, market participants will keep a close watch on developments to guide their investment decisions and strategies.
