Stock market today: Following strong global market bias and gains in the Asian market peers, the key benchmark indices of the opened with an upside gap on Friday. The index opened higher at 23,110 and touched an intraday high of 23,319 within a few minutes of the Opening Bell. The BSE Sensex opened higher at 74,559 and regained the psychological 75,000 mark by hitting an intraday high of 75,204. The Bank Nifty index touched an intraday high of 54,382 after a gap-up opening at 53,548.
According to stock market experts, the key benchmark indices of the Indian stock market are rising following the easing of tensions in the US-Iran war. This led to a slide in the US dollar and crude oil prices. However, they maintained that a bull trend can be assumed only when the Nifty 50 index decisively breaks above 23,800.
Why is the Indian stock market up today?
Speaking on the reasons that are fueling the Indian , Avinash Gorakshkar, a SEBI-registered fundamental equity analyst, said, “This can be a relief rally as we had witnessed a huge short selling on Thursday. So, a relief rally was expected on short covering. However, there is some ease in the US-Iran tension as the US administration yesterday lifted sanctions on the Iranian oil that are already shipped and currently lying idle in the ocean.”
The SEBI-registered expert said that the US government’s relief on Iranian oil exports has sparked speculation that tensions between the two countries are cooling.
Oil, US dollar rates under pressure
Anuj Gupta, another SEBI-registered market expert, said bets on a de-escalation in the US-Iran war have triggered profit-booking in the oil and currency markets. The WTI Crude Oil price, which closed in on $100 per barrel yesterday, has retraced and is currently oscillating around $94 per barrel.
“Dip in crude oil prices has put the brakes on the rising US dollar rates. The US Dollar index is currently around 99, up from 100 on Thursday. So, easing in the geopolitical tension has put oil and the US dollar under pressure, which is fueling equities, gold and silver rates today,” said Anuj Gupta.
Outlook for the Indian stock market today
Advising investors not to fall prey to such relief rallies, Avinash Gorakshkar said one should not make any big investment in the current rebound, as it may turn out to be a relief rally, and today’s bounce may be a dead-cat bounce. The expert maintained that the major reason for yesterday’s stock market crash remains, as there has been no announcement of a ceasefire from either side.
“The primary reason for pressure on the global equity market, including Dalal Street, is the US-Iran war, and the geopolitical unrest is not over yet. A single statement from Donald Trump, Benjamin Netanyahu or from the Iranian leaders would be enough to trigger fresh tension as neither side has shown any kind of intention to announce a ceasefire,” said Gorakshkar.
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment will remain cautious to negative until the Nifty 50 index closes above 23,800.
Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, “The 50-stock index would have the next major support near the 22700 zone, which needs to be sustained, and, on the upside, only a major move above the level of the 23800 zone shall improve the bias from the current rate.”
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