Sensex, Nifty open lower in volatile trade amid weak global cues
The S&P BSE Sensex was up down 151.49 points at 71,332.26 at around 9:50 am, while the NSE Nifty 50 fell 31.90 points to 21,424.75. Broader market indices also lost momentum during early trade.
Benchmark stock market indices opened lower on Monday amid weak sentiments across Asian peers, snapping a record rally.
The S&P BSE Sensex was up down 151.49 points at 71,332.26 at around 9:50 am, while the NSE Nifty 50 fell 31.90 points to 21,424.75. Broader market indices also lost momentum during early trade.
It may be noted that the Nifty and Sensex have displayed notable strength this month, registering approximately over 6 per cent gain so far. This performance marks their most impressive monthly showing in 2023, with the Nifty achieving record highs in nine out of eleven sessions.
The market rally had been fueled by factors such as a more favorable global interest rate outlook, the Reserve Bank of India’s upward revision of its fiscal 2024 growth forecast, a resurgence of foreign inflows, robust domestic investments, and a moderation in oil prices.
Meanwhile, foreign portfolio investors (FPIs) have significantly contributed to the market surge, purchasing shares worth Rs 42,733 crore in the first half of December. This positive trend follows their transition to net buyers in November, as revealed by data from the National Securities Depository.
Ahead of today’s market opening, Mandar Bhojane, research analyst at Choice Broking, said, “The benchmark Sensex and Nifty indices are expected to open marginally lower on December 18, as signals from the GIFT Nifty indicate a flat to negative start for the broader index.”
“Technical charts suggest that the Nifty is in the overbought zone, indicating a potential correction in the near future. Nifty may find support at 21,250, followed by 21,200. On the upside, 21,600 could serve as immediate resistance, followed by 21,700,” he noted.
“Substantial buying from both FIIs and DIIs is expected to provide strong support for the market to move higher in the coming days. Therefore, traders and investors are advised to maintain their long positions with a trailing stop loss set at 21,000 levels,” he noted.