Nifty-Sensex starts Tuesday trading with gains

MUMBAI: Indian stock markets opened in green on Tuesday's trading session. Sensex opened at 73,971.45 gaining 322.83 points and 0.44 per cent while the Nifty opened at 22,426.45 gaining 90.05 points, which is 0.4 per cent gain buoyed by positive global cues. Nifty 50 formed a small candle on the daily chart, resembling a long-legged doji or dragonfly doji, suggesting a potential reversal. While the index surpassed the 22,300 hurdle, it faces resistance at 22,500 levels in the short term, with the possibility of reaching new all-time highs if sustained above this level, according to market experts.

"FPI selling triggered by high US bond yields is neutralised by aggressive DII buying, putting the FPIs on the back foot. The only concern in the market now is the high valuations particularly in the broader market. Investors may stick to the safety of fairly valued largecaps" said K Vijayakumar, Chief Investment strategist, Geojit Financial Services. The shares of Mahindra & Mahindra financial services declined almost 5 per cent at the time of filing this report on Tuesday after the company informed of a financial fraud at its North East branch. The company in a filing to exchange informed of a Rs 150 crore financial fraud involved by of KYC documents.

The company also informed that due to the fraud, it has decided to defer the announcement of financial results for the fourth quarter and financial year ended March 31, 2024. In the early trade on Tuesday, 35 stocks opened in advance on Nifty while the 15 stocks opened in red. All the major indices on the NSE- Nifty Next 50, Nifty Midcap Select, Nifty Bank and Nifty IT were trading in green.

"Options data indicates strong support at the 22,000 level and notable call concentrations at 22,500 and 22,600 levels, nearing all-time highs" said Varun Aggarwal, MD, Profit Idea. Asian stocks rallied following a rebound in US shares, driven by optimism surrounding forthcoming earnings reports from major tech companies.

Geo-political tensions eased after Iran downplayed Israel's apparent strikes on its territory last week and said it does not plan to respond, erasing most of the risk premium. Growth concerns are once again on the forefront as robust economic data from US coupled with stalled inflation progress pushed back Fed rate cuts to September. In the market treasuries remained steady ahead of bond auctions, while focus in Asia returns to China's role as a major creditor amid reports of debt restructuring discussions. Oil prices edged higher amidst easing tensions between Israel and Iran, while gold recovered slightly after Monday's decline.