Indian stock markets opened on a positive note on Tuesday, reversing the recent trend of weakness as both indices gained in the opening session. The Nifty 50 index opened at 23,529.55 points with a surge of 75.75 points or 0.32 per cent, while the BSE Sensex opened at 77,548 points with a gain of 208.99 points or 0.27 per cent. Experts noted that markets are in the oversold territory.
While a sudden bounce back to the higher levels of Nifty is not expected soon, markets may consolidate around the current levels. “The Nifty ended lower yesterday, its seventh straight daily loss. Short-term momentum is also deeply oversold, with the current decline dropping below the regression channel drawn from the March 2023 lows, which means, statistically speaking, a bounce is overdue. Holding support in the 23200 – 23300 zone is key, though, while 23680 remains the immediate upside hurdle,” said Akshay Chinchalkar, Head of Research, Axis Securities.
In the sectoral indices on the NSE, the Nifty Realty index opened as the highest gainer, with a surge of 1.64 per cent, while Nifty Oil & Gas also gained more than 1.56 per cent. All other sectoral indices were also in the green at the time of filing this report. In the Nifty 50 list, 40 stocks opened with gains, while only 10 stocks declined in early trade. “An important takeaway from the recent market trend is that a quick and sharp recovery is not in sight. The momentum that drove the market to its record peak of 26216 in September is gone. There can be recoveries that are unlikely to be sustained given the selling mode of the FIIs and the concerns surrounding the weak earnings growth feared in FY25,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He added, “At best, the market may consolidate around the present levels with sideways movements. Sustained-up moves will emerge only when incoming data indicates earnings recovery.
