Indian equity indices opened Monday’s trading session on a higher note, breaking a six-day losing streak. However, the markets lost the momentum it was witnessing in the GIFT Nifty this morning. The NSE Nifty 50 opened 54 points or 0.22% higher at 24,709. The BSE Sensex opened 132 points or 0.16% higher at 80,558.
The Bank Nifty opened 59 points or 0.11% higher at 54,448. Similarly, the small and midcap stocks opened the day higher. The Nifty Midcap rose 250 points or 0.44% to open at 56,628.
“The market drifted down continuously during the last six trading days, pulling the Nifty below the 24,800 level, which was a support zone. Technically, the market continues to be weak, but it has reached oversold levels and, therefore, a short-term bounce back is likely at any time. However, if any rally is to sustain, the market needs positive news, particularly on the trade deal with the US. Therefore, the market focus will be on that,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
“The monetary policy expected on October 1st is unlikely to surprise. The present growth-inflation dynamics do not warrant a rate cut. Therefore, the RBI is likely to hold rates while sending a dovish message to support the growth momentum in the economy,” he added.
Vipin Kumar, Assistant Vice President of Technical and Derivatives Research at Globe Capital, said that sustenance below 24,600 might instigate a fresh round of selling. If that happens, the index could further fall towards 24,300 levels in the near term. The possibility of some bounce back cannot be ruled out at this juncture, but that should be taken as a fresh short opportunity till it is trading below 25,000 on a closing basis, he stated.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Bharat Electronics, Zomato (Eternal), Mahindra & Mahindra, Tata Steel, and Infosys. On the flip side, the key laggards in the Nifty 50 pack included Hindustan Unilever, Axis Bank, Maruti Suzuki, Nestle India, and Larsen & Toubro.
Major movers on Monday
The stocks that were the major movers in the opening trade included Maruti Suzuki, Adani Enterprises, Axis Bank, L&T, and SBI, which were the major movers in the morning trade.