Sensex, Nifty eye fresh record opening highs; 5 things to know before market opens

Analysts say bulls continued to remain in charge of Dalal street amid volatility, setting the stage for festive season. Image: Pixabay

Trends on SGX Nifty were pointing at a fresh record high start for BSE Sensex and Nifty 50 on Monday. In the previous session, Sensex, Nifty and Bank Nifty clocked record closing highs. BSE Sensex rallied 568 points to end at 61,305, the first time ever above 61,300, while the Nifty 50 index settled at 18338, rising 177 points. Analysts say bulls continued to remain in charge of Dalal street amid volatility, setting the stage for festive season. While there are not much negative triggers, macroeconomic trends keep improving month-on-month. “Markets are in clearly festive mood and we are witnessing fasters sector rotation at play. The earning season has started off on a strong note and needs to continue delivering strong numbers for the market to sustain the current momentum,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said.

Q2 results today: BSE-listed companies such as UltraTech Cement, Larsen & Toubro Infotech, Route Mobile, Alok Industries, Concord Drugs, Craftsman Automation, Gujarat Hotels, Hathway Bhawani Cabletel & Datacom, Hatsun Agro Product, International Travel House, Lloyds Steels Industries, Navigant Corporate Advisors, Sunedison Infrastructure, SVP Global Ventures, Tanfac Industries, Tata Coffee, and Uniply Decor will announce September quarter earnings on October 18.

FII and DII data: On Thursday, foreign institutional investors (FIIs) bought shares worth Rs 1,681.60 crore, while domestic institutional investors (DIIs) sold shares worth Rs 1,750.59 crore on a net basis in the Indian stock market.

Global watch: Asian stock markets were trading mostly lower in early trade on Monday.The Japan’s Nikkei shed 0.37% while the Topix index declined 0.4%. South Korea’s Kospi fell 0.23%. The Hang Seng index in Hong Kong fell 0.44%. In overnight trade on Wall Street on Friday, US stocks rose and the Dow scored its biggest weekly percentage gain since June, according to Reuters. The Dow Jones Industrial Average rose 382.2 points, or 1.09%, to 35,294.76, the S&P 500 gained 33.11 points, or 0.75%, to 4,471.37 and the Nasdaq Composite added 73.91 points, or 0.5%, to 14,897.34.

Nifty view: On the technical front, the market is likely to remain in the bullish territory as long as Nifty is holding above 18100, said an analyst. “Nifty formed a bullish candle on the daily chart and has been forming higher lows for the last three sessions.. Daily momentum indicator Stochastic and MACD have shown positive crossovers on the daily chart which is supporting the bullish momentum,” Aprajita Saxena, Research Analyst, Trustline Securities, told Financial Express Online.

Bank Nifty resistance at 40,000: Index is trading above its 21, 50 & 100-day exponential moving averages on daily time frame, which is positive for the prices in the near term. Major resistance is placed near 39,800- 40,000 levels. On the downside if prices break below 38,800 then we may test 38,200 levels, Saxena added.