Nifty and Sensex Experience Volatility in Early Trade on Tuesday
Equity benchmark indices, Nifty and Sensex, opened strong on Tuesday, gaining over 300 points. However, volatility soon arrived as investors became cautious amidst foreign fund outflows and escalating tensions in the Middle East. Traders also expressed caution ahead of the US Federal Reserve’s interest rate decision.
During the initial trading session, Sensex rose 135.15 points to open at 64,254.83, while Nifty gained 49.25 points to open at 19,170.25. At the time of publishing, Nifty had slipped 0.2% into the red.
Gainers in the morning trade included Dr Reddy, BPCL, Bajaj Finserv, Tata Motors, and Hindalco. On the other hand, Bharti Airtel, Britannia, LITMindtree, M&M, and ONGC were among the top losers.
Varun Aggarwal, founder and managing director of Profit Idea, highlighted the positive sentiment in the Indian market following a strong rally in Dow Jones and Nasdaq. US stock futures also indicated a potential rebound. Aggarwal mentioned the upcoming events that are being closely watched investors, such as the Federal Reserve’s two-day meeting and Apple’s earnings report on Thursday.
As investors navigate the market volatility, Aggarwal emphasized the importance of crucial resistance levels in the Indian market at 19343-19463. Options interest data revealed significant open interest between 19300-19500 levels, with call writers actively selling calls. On the downside, strong support is expected at 18134-18458.
Aggarwal advised investors not to worry about concerns related to war, US recession, debt levels, or high-interest rates. Instead, he suggested focusing on quality stocks for the long term, as the Indian economy has immense potential. Aggarwal remained positively biased on the Indian economy, anticipating new highs in the market.
In terms of sectoral preferences, Aggarwal expressed bullishness on IT, Media, Metals, FMCG, Pharma, and Banking.
While global concerns continue to impact market sentiment, experts remain optimistic about India’s economic growth potential and its goal of becoming a USD 5 trillion economy. Investors are advised to concentrate on quality stocks and implement risk-defined strategies for trading.
The market is expected to witness new highs in the near future, providing lucrative opportunities for investors.
(With text input from ANI)