Sensex, Nifty near all-time highs after cautious opening

By Koustav DasBenchmark stock market indices inched closer to their all-time highs on Wednesday after a cautious opening on Wednesday.

The S&P BSE Sensex traded 0.19 per cent higher at 63,447.50 at 9:15 am, while the NSE Nifty 50 rose 0.10 per cent to 18,835.40.

Broader market indices continued their positive run, staying in tune with the benchmarks despite an air of cautiousness.

Except for metal and pharma, all major sectoral indices were trading in positive territory. Heavyweights Nifty Bank, Nifty IT and Nifty Financial Services also provided support to the benchmarks.

The top five gainers on the Nifty 50 were HDFC Life, Powergrid Corporation, L&T, HDFC Bank and Wipro, while JSW Steel, Divi’s Laboratories, Hindalco, Apollo Hospitals and Tata Steel were the biggest losers.

While markets were expected to open with a slight positive bias, it seems the mood is slowly turning positive with heavyweight sectors gaining momentum.

However, markets are likely to witness some swings throughout the trading session as investors wait for US Federal Reserve Chair Jerome Powell’s congressional testimony, which will provide insights into future interest rate hikes.

On the technical side, Ameya Ranadive, research analyst at Choice, said, “Analysis of the volume profile suggests that the Index has robust support within the 18,650-18,600 range. This range is anticipated to serve as a significant level of support going forward, indicating a potential floor for the market.”

“Examining the Open Interest (OI) data, it is observed that the call side exhibits the highest OI at the 19,000 strike price, followed by the 18,900 strike price. On the put side, the highest OI is observed at the 18,700 strike price. These levels are essential in identifying potential resistance and support areas for future market movements,” he added.

“Turning to the Bank Nifty, it is anticipated to find support around the 43,400-43,500 levels, while resistance is likely to be encountered around the 44,050 level. These levels should be closely monitored as they can provide valuable insights into the potential direction of Bank Nifty.”

Randive, however, highlighted that it is “important to exercise caution” as foreign institutional investors were net sellers, offloading shares worth Rs 1,942.62 crore in the previous session, while domestic institutional investors turned net buyers, acquiring shares worth Rs 1,972.51 crore.

“This mixed participation from institutional investors indicates a divergence in their market sentiment and underscores the need for careful monitoring of market dynamics,” he said.