On Thursday, the benchmark stock market indices closed slightly higher, supported by a strong rally in consumer stocks and favorable global cues. The S&P BSE Sensex gained 112.10 points to close at a record high of 81,053.19, marking another day of positive momentum in the market. Meanwhile, the NSE Nifty50 added 41.30 points, ending the day at 24,811.50, as investor sentiment remained buoyant.
The market's positive performance was significantly influenced by optimism from global markets, particularly from the U.S., where the S&P 500 continued its upward trajectory. This ongoing rally in U.S. markets is largely attributed to increasing investor confidence, spurred by growing expectations of potential interest rate cuts by the Federal Reserve. Vaibhav Vidwani, Research Analyst at Bonanza Portfolio Ltd., noted that these global cues played a crucial role in lifting market sentiment in India, as investors anticipated that a more accommodative monetary policy in the U.S. could have positive spillover effects on emerging markets.
Aditya Gaggar, Director of Progressive Shares, provided further insights into the day's trading. He highlighted that despite being a non-directional weekly expiry day, the markets managed to close higher, with the Nifty50 ending at 24,811.50, up by 41.30 points. Sector-wise, Metal stocks emerged as the top performers, benefiting from robust demand and favorable commodity prices. PSU Banks and FMCG sectors also posted solid gains, reflecting investor confidence in these areas. However, the Energy sector underperformed, dragging on the overall market sentiment due to concerns over fluctuating oil prices and sector-specific challenges.
Gaggar also pointed out a noticeable divergence in the broader market performance. While Midcap stocks outpaced the larger market, showing strong resilience and investor interest, Smallcap stocks moved in tandem with the Frontline Index, indicating a more cautious approach from investors in this segment. The Nifty50, which has been on a consistent upward trajectory, nearly touched its target of 24,870 during the day's trading, with the day's high reaching 24,867.35. However, Gaggar cautioned that the 24,850 to 25,000 range represents a bearish gap zone, which could act as a resistance level for the index. Given the sustained rally over the past five sessions, he suggested that a pullback might be on the horizon. If such a correction occurs, Gaggar expects the Nifty50 to find support around the 24,720 level, offering a potential buying opportunity for investors looking to enter the market at lower levels.
Overall, while the market continued its upward march, experts like Gaggar and Vidwani emphasized the importance of monitoring global cues, sector-specific developments, and technical indicators closely, as these factors will likely influence the market's direction in the coming days. Investors are advised to stay vigilant and consider potential pullbacks as opportunities to reassess and adjust their portfolios accordingly.
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