Indian domestic stock benchmark indices extended their positive momentum on Wednesday, driven by a mix of favorable trends in Asian equities, fresh foreign fund inflows, and strong performances from certain sectors. The BSE Sensex and NSE Nifty 50 indices both closed higher, maintaining their upward trajectory. While sectoral trends remained mixed, realty and energy stocks outperformed, while IT and FMCG stocks struggled to gain traction.
Sensex and Nifty Performance: A Positive Day for Investors
The BSE Sensex ended the day with a gain of 147.79 points, closing at 75,449.05, while the NSE Nifty 50 index rose by 73.30 points, closing at 22,907.60. The broader market also displayed strong performance, further boosting investor sentiment. Despite some mixed sectoral performance, the recovery in the markets signals optimism among investors, particularly driven by global cues and renewed interest from foreign investors.
Asian equities performed well on Wednesday, with many of the region’s stock markets posting solid gains. This positive trend spilled over into the Indian markets, allowing the Sensex and Nifty to extend their rallies. Additionally, foreign fund inflows have continued to support the positive sentiment, highlighting investor confidence in India’s growth story.
Sectoral Performance: Realty and Energy Lead, IT and FMCG Lag
While the overall market closed in the green, sectoral performance presented a mixed picture. The realty and energy sectors emerged as the front-runners, showing strong gains throughout the trading session. These sectors were driven by optimism surrounding recovery in economic activity, particularly in real estate and energy consumption.
On the other hand, information technology (IT) and fast-moving consumer goods (FMCG) stocks failed to keep pace with the broader market rally. The IT sector, in particular, faced some headwinds, with investor sentiment impacted by concerns over global demand and potential slowdown in major markets. FMCG stocks, which had previously enjoyed steady growth, showed signs of fatigue, with some analysts noting the impact of rising input costs on the profitability of companies within the sector.
Market Outlook: Reaction to US Fed Meeting and Weekly Expiry
As the Indian stock market gears up for Thursday’s trading session, all eyes are on the US Federal Reserve’s upcoming meeting outcome. Analysts expect that the US Fed’s stance on interest rates and monetary policy will provide some guidance for global markets, including India. The Federal Reserve’s decisions will be carefully scrutinized for indications of how the US economy is performing and what it means for global financial markets.
Market experts are predicting that Indian markets could experience some volatility as a result of the Fed meeting’s outcome. However, they remain optimistic about the long-term outlook, with a positive sentiment continuing to dominate the market despite some short-term consolidation. Traders are advised to adopt a “buy on dips” strategy, taking advantage of any price corrections to enter or add to positions.
Technical Outlook: Sensex Support and Resistance Levels
Technical stock analysis suggests that the short-term trend remains positive, although the market could see some consolidation due to overbought conditions. According to Shrikant Chouhan of Kotak Securities, the benchmark indices are currently witnessing range-bound activity at higher levels, signaling indecision between bulls and bears. Chouhan notes that a small bullish candle on daily charts further underscores the market’s current uncertainty.
Support and resistance levels are key factors to watch for traders in the coming sessions. Jigar Patel from Anand Rathi Stock Brokers suggests that the market could see a breakout if the Sensex crosses the 75,800 mark, indicating continued bullish momentum. On the other hand, if the Sensex drops below 75,000, it could signal a pullback, pushing the index toward 74,800.
For day traders, the support zones are identified between 75,200 and 75,000, while the resistance zones are between 75,800 and 76,000. A break below the 75,000 level could trigger a correction, making the uptrend vulnerable, while a sustained move above 75,800 would reinforce the bullish trend.
