Will the Sensex and Nifty Continue Their Upward Trend?

Mumbai, Aug 11 (NationPress) The Indian benchmark indices kicked off the week on a positive note on Monday, primarily driven by the impressive performance of PSU bank stocks. The BSE Sensex surged by 122 points, translating to a growth of 0.15 percent, reaching 79,980, while the Nifty 50 slightly increased to 24,405, climbing 42 points or 0.17 percent. The Nifty Bank also exhibited a rise of 0.34 percent, landing at 55,194.

Broader market indices reflected similar trends, with the BSE SmallCap index gaining 0.16 percent and the BSE MidCap index climbing 0.19 percent. In the previous week, both the Nifty and Sensex witnessed declines of nearly one percent.

“The Nifty may find support around the 24,300 level, followed by 24,200. A drop below these thresholds could lead to heightened selling pressure towards the 24,000 mark. Conversely, immediate resistance is anticipated at 24,500,” noted Hardik Matalia from Choice Equity Broking.

Looking at sectoral performance, the Nifty PSU Bank index rose by 1.42 percent, whereas the Nifty IT index experienced a drop of 0.46 percent. Other indices exhibited modest gains, generally capped at 0.25 percent.

Among the Nifty constituents, Grasim, SBI, Adani Enterprises, and Trent led the charge as top gainers. In contrast, Titan Company was the most significant loser, down by 0.97 percent, followed by Bajaj Finserv, ICICI Bank, Asian Paints, and Apollo Hospitals.

Investors are closely monitoring updates on the US-India trade agreement, quarterly earnings, tariff discussions, and forthcoming inflation data for market insights.

“This week, geopolitical developments, especially the outcome of the Trump-Putin discussions in Alaska, will be pivotal in shaping market trends. A significant positive outcome could lead to a resolution of the Russia-Ukraine conflict, potentially allowing the oversold market to rebound sharply,” commented Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

In the US markets, technology stocks performed robustly, with the Dow Jones Industrial Average climbing by 0.47 percent, the Nasdaq advancing by 0.98 percent, and the S&P 500 increasing by 0.78 percent.

Asian markets were also active, with investors waiting for an official announcement regarding the potential extension of the August 12 deadline for the US-China tariff truce. Japan's Nikkei soared by 1.85 percent, while China's Shanghai index rose by 0.38 percent and Shenzen improved by 1.39 percent. The Hang Seng in Hong Kong increased by 0.21 percent, and South Korea's Kospi edged up by 0.18 percent.

After a streak of 14 sessions as net sellers, foreign institutional investors (FIIs) shifted to net buyers on Friday, acquiring equities worth nearly Rs 1,932 crore. Similarly, domestic institutional investors (DIIs) bought equities worth Rs 7,723 crore on the same day.