IT stocks push Sensex and Nifty higher in cautious trade
Analysts identify 24,025 as a key downside level for the Nifty, with resistance expected near 24,378
Indian benchmark indices opened higher on Friday as gains in information technology stocks supported the market, although investors remained cautious ahead of US Federal Reserve Chair Kevin Warsh’s remarks at the Jackson Hole Symposium.
In early trading, the Sensex rose 193.02 points, or 0.25 per cent, to 77,126.61. The Nifty advanced 33.80 points, or 0.14 per cent, to 24,124.65.
Technology shares led the gains on the Nifty, with Tech Mahindra, Tata Consultancy Services and Infosys among the strongest performers. The Nifty IT index climbed more than 1 per cent, outperforming the broader market.
The Nifty Metal and Nifty Media indices also traded higher. In contrast, the Nifty Private Bank and Nifty Financial Services indices remained under pressure.
The broader market recorded modest gains. The Nifty MidCap index rose 0.03 per cent, while the Nifty SmallCap index advanced 0.16 per cent.
Market experts said the highest Put open interest on the Nifty was concentrated at the 24,000 and 23,800 strike levels, suggesting that traders expected buying support in this range. The maximum Call open interest was clustered at the 24,200 and 24,300 strikes, indicating potential resistance where sellers could limit further gains.
Analysts said a decisive fall below the previous swing low of 24,025 could confirm a positional reversal in the trend. On the upside, the recent swing high of 24,378 was expected to serve as the immediate resistance level.
Investors are closely following developments at the Jackson Hole Symposium for indications about the Federal Reserve’s interest-rate outlook and the broader course of US monetary policy. Any change in expectations could influence global equity markets and foreign investment flows.
Higher crude oil prices also remained a concern. Brent crude rose above $89 a barrel amid continued uncertainty over the reopening of the Strait of Hormuz.
An analyst said the absence of a diplomatic solution and the lack of clarity over the strategic waterway were weighing on market sentiment.
With IANS inputs