Indian stocks staged a smart rebound during the final hour of trade in Thursday’s session, September 10, as buying emerged in select financial heavyweights, helping the headline indices snap their three-day losing streak.
Tracking weak global cues, Dalal Street began the session on a weak note, with both headline indices at one point breaking below the previous day’s lows. However, they managed to recover all their losses and ended the session in positive territory, although they remained near three-month lows.
Indian stock market today
The Nifty 50 concluded the session with a gain of 0.20% at 23,477, while the S&P BSE Sensex rose 0.19% to 74,902. The broader markets, however, remained in the red, with the Nifty Midcap 100 and Nifty Smallcap 100 indices closing 0.38% and 0.07% lower, respectively.
Sectoral performance was mixed, with media, PSU banks, and private banks emerging as the top gainers, while metal, healthcare, pharma, auto, and IT stocks closed lower.
The escalating tensions in the Middle East have continued to weigh on market sentiment, keeping crude oil prices elevated and fuelling expectations of a rate hike by major global central banks.
West Texas Intermediate crude rose to around $97 a barrel in trade, while Brent advanced 0.5% to $101.69 following the latest US attacks on Iranian crude ships. The developments added to expectations that the Federal Reserve could raise interest rates to contain inflation.
President Donald Trump downplayed concerns about oil prices and a war he said would end after the midterm elections, though hostilities have shown little sign of easing. Iran will escalate its counterstrikes if the US continues attacking its territory and infrastructure, Bloomberg reported, citing a senior official from the Islamic Republic.
The combination of higher oil prices and rising bond yields has left markets particularly sensitive to Friday’s US inflation report, which could determine whether the Fed raises rates this month.
What levels should traders watch in the Dow, Hang Seng, Nikkei and Kospi?
In Asian trading, Tokyo’s Nikkei 225 reversed earlier losses to gain 0.2% at 65,270.95, while South Korea’s Kospi fell 0.3% to 7,033.92. Hong Kong’s Hang Seng declined 1.3% to 24,954.47, while the Shanghai Composite index slipped 0.4% to 3,934.40.
In Australia, the S&P/ASX 200 fell 1.2% to 8,819.40, while Taiwan’s Taiex declined 0.5%.
Vipin Kumar, AVP-Research at Globe Capital Market, said the Dow Jones Industrial Average has breached its multi-week congestion range to the downside. Going forward, he expects the index to move towards the 51,550 level in the near term, while any bounce towards the 52,700–52,800 range could attract fresh selling interest from swing traders.
Turning to Asian markets, Kumar said the Hang Seng, in line with US equity markets, has also breached its month-long consolidation range to the downside. He expects the index to test the 24,400 level in the near term.
Unlike the Dow Jones and the Hang Seng, Kumar said the Nikkei and the Kospi are still hovering within their respective congestion ranges of 63,700–67,000 for the Nikkei and 6,420–7,220 for the Kospi. A break on either side of these ranges will be essential in determining their next short-term directional move.
Will Nifty, Sensex bounce from oversold levels? Key levels to watch
Shrikant Chouhan, Head Equity Research at Kotak Securities, said the benchmark indices witnessed range-bound activity on Thursday, with the Nifty ending 46 points higher and the Sensex rising by 139 points.
Among sectors, Chouhan said selective financial stocks witnessed intraday buying interest, while the defence index emerged as the top loser, shedding nearly 1%. Technically, he said the short-term market outlook remains weak, although temporary oversold conditions could trigger a pullback rally from the current levels.
For day traders, Chouhan said 23,400/74,700 would act as key support zones, while 23,500/75,000 would be the immediate hurdles for the bulls. According to him, a move above 23,500/75,000 could extend the bounce-back to 23,700-23,750/75,500-75,700.
Conversely, Chouhan said selling pressure is likely to accelerate if the market falls below 23,400/74,700. If the indices drop below these levels, he expects them to slip to 23,300-23,250/74,500-74,200.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.