Are Sensex and Nifty Trading Higher Thanks to Positive Global Signals?
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Synopsis
On May 2, the Indian stock indices opened positively, influenced by encouraging global cues. With significant gains in key sectors, analysts predict potential bullish trends for Nifty. Explore the factors contributing to this upward movement in the markets.
Key Takeaways
- Sensex surged by 350 points, reaching 80,592.
- Nifty rose by 71 points, standing at 24,407.
- Strong performance observed in auto, banks, and financial services sectors.
- Technical indicators suggest a potential bullish breakout for Nifty.
- Institutional buying remains strong, suggesting a positive market sentiment.
Mumbai, May 2 (NationPress) The Indian stock markets commenced the day on a positive note on Friday, buoyed by encouraging signals from international markets.
As of 9:22 am, the Sensex had risen by 350 points or 0.44 percent, reaching 80,592, while the Nifty climbed 71 points or 0.29 percent to stand at 24,407.
Midcap and smallcap indices showed little movement compared to their largecap counterparts. The Nifty Midcap 100 index rose by 40 points or 0.08 percent, reaching 54,185, whereas the Nifty Smallcap 100 index dipped by 12 points to 16,436.
Sector-wise, indices such as auto, PSU bank, private bank, financial services, metal, and realty enjoyed significant gains, while pharma, FMCG, and media lagged behind.
Analysts noted that, technically, Nifty 50 continues to stabilize within a narrow range, forming a neutral candlestick pattern. A flag and pole pattern is emerging on the hourly chart, indicating a potential bullish breakout.
If Nifty maintains its position above 24,400, it could aim for targets of 24,500 and 24,700. Immediate support levels are identified at 24,200, 24,100, and 24,000, presenting opportunities for dip buying,” commented Mandar Bhojane from Choice Broking.
Within the Sensex, top performers included Adani Ports, Maruti Suzuki, IndusInd Bank, Axis Bank, ICICI Bank, M&M, Tata Motors, TCS, Infosys, HDFC Bank, NTPC, and SBI. Conversely, stocks like Nestle, Titan, Bajaj Finserv, HUL, Power Grid, and Bajaj Finance were among the top losers.
Globally, stock markets were in the green, with cities such as Tokyo, Hong Kong, Seoul, Jakarta, and Bangkok showing gains.
The US markets also closed positively on Thursday, with the technology index Nasdaq surging over 1.5 percent.
On the commodities front, Brent crude was priced at $62.62 per barrel, reflecting a gain of about one percent.
Institutionally, Foreign Institutional Investors (FIIs) maintained their buying trend for the 11th consecutive session, albeit with a modest net purchase of Rs 50 crore.
Meanwhile, Domestic Institutional Investors (DIIs) demonstrated stronger conviction, acquiring equities worth Rs 1,792 crore. This combined flow indicates a supportive sentiment for Indian stocks.
Devarsh Vakil, Head of Prime Research at HDFC Securities, stated that the overall trend for Nifty remains bullish, as it continues to trade above all key moving averages.
Point of View
Primarily driven by favorable global cues and strong institutional buying. As the Nifty remains above crucial moving averages, it indicates a bullish outlook. However, investors should remain cautious and monitor support levels closely.
NationPress
02/05/2025
Frequently Asked Questions
What caused the rise in Sensex and Nifty today?
The rise in Sensex and Nifty today is attributed to positive cues from global markets, alongside strong buying by institutional investors.
Which sectors are performing well in the stock market?
Sectors such as auto, PSU banks, private banks, financial services, metals, and realty are major gainers, while pharma and FMCG sectors are lagging.
What technical patterns are analysts observing?
Analysts are noticing a neutral candlestick pattern in Nifty 50, along with a developing flag and pole pattern that suggests a potential bullish breakout.
What are the immediate support levels for Nifty?
Immediate support levels for Nifty are at 24,200, 24,100, and 24,000, which may present dip-buying opportunities.
How are institutional investors influencing the market?
FIIs have continued their buying streak, while DIIs have shown stronger conviction in purchasing equities, indicating a supportive undertone for Indian equities.
