- Sensex may go up to 63,000 once it sustains above its immediate hurdle placed at 61,000 levels, say stock market exerts
Stock market today: Indian stocks snapped its three days losing streak and surged in early morning deals on Friday session. 30-stock BSE Sensex opened upside and regained the psychological 60,000 levels. The BSE sensitive index went on to hit intraday high of 60,889 levels within few hours of stock market’s opening bell.
Similarly, 50-stock NSE Nifty index ascended around 280 points and climbed to intraday high of 18,141 levels. The 50-stock index regained the psychological 18,000 levels while ascending in early morning session on Monday deals.
According to stock market experts, key benchmark indices that includes Sensex and Nifty have surged today as the wage growth in the US has declined in December, hinting a cool-off in upward price pressures. They said that Sensex is facing resistance at 61,000 levels whereas immediate hurdle for Nifty is now placed at 18,300 mark. If Sensex manages to break the 61,000 hurdle, then we can expect the 30-stock index to scale up to 63,000. Similarly, on breakage of 18,300 levels, Nifty may become highly bullish if it manages to breach the hurdle placed at 18,300.
What is pulling Sensex and Nifty today
Speaking on the reason for rise in Sensex and Nifty indices, market expert Sugandha Sachdeva said, “Indian stock market today witnessed strong rebound in early morning deals tracking global cues as the wage growth in the US has declined in December, hinting a cool-off in upward price pressures.” She said that a strong support is in sight at the 17,800 mark and Nifty looks to edge on the higher trajectory, though it is still expected to encounter major resistance at the 18,500 mark in the near-term.
“We may see the benchmark spend some more time in this zone itself in the coming days as triggers like the US inflation data coming this week is expected to dictate the monetary policy stance of the US Fed,” said Sugandha Sachdeva.
“The US economic data released on Friday is significant from the global market perspective. All data point to a strong but cooling US economy, which indicates the rising possibility of a soft landing for the US economy. The ISM Services data came at 49.6 against the previous figure of 56.5. The December jobs increase was 223000, the lowest in 2 years. The hourly wage increase slowed to 4.6 per cent against the recent peak of 5.6 per cent,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The Geojit Financial Services expert went on to add that all these point to cooling inflation and the possibility of the Fed going less hawkish in 2023. The market has already started discounting this with the dollar index declining below 104 and the US 10-year bond yield declining by 12bp. All signals are bullish.
Asked about the technical view on Sensex and Nifty, Sumeet Bagadia, Executive Director at Choice Broking said, “Senex has strong support placed at 59,500 whereas it is facing immediate hurdle at 691,000. On breaching this hurdle, it may go up to 63,000 levels in near term. Likewise, Nifty is facing hurdle at 18,300. On breaching this level, the 50-stock index may come highly bullish.”
Sumeet Bagadia of Choice Broking said that Nifty has immediate support placed at 17,900 and 17,700 levels now.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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