Market Opening Update: Nifty, Bank Nifty Show Positive Momentum; Auto Stocks Lead Rally
Indian markets started the session on a positive note today, with Gift Nifty trading 40 points higher, reflecting upbeat sentiment from global cues. The Dow Jones futures were up by nearly 37 points, while Asian markets traded mixed but maintained a strong positive bias.
Previous Session Recap
On Monday, both Nifty 50 and Bank Nifty rebounded from their crucial 200-day exponential moving average support levels.
Nifty 50 closed above 24,500, gaining 198 points.
Bank Nifty ended above 54,000, with a 347-point rise.
The market displayed strong buying interest, particularly in the auto sector, supported by robust sales numbers and expectations of a possible GST reduction on two-wheelers from 28% to 18%.
Top Gainers
Bajaj Auto: +4%
Mahindra & Mahindra (M&M): +4%
Tata Motors: +3%
Hero MotoCorp: +3%
The auto sector outperformed due to strong domestic and export sales, coupled with GST cut expectations.
Top Losers
Sun Pharma: -2%
ITC: -1%
Hindustan Unilever: marginal decline
These stocks from the F&O segment witnessed some profit-booking.
Precious Metals in Focus
Gold and silver remained the highlight of Monday’s session:
Gold crossed ₹15,000 in international markets, while in local shops, 24-carat gold was quoted near ₹18,000 per 10 grams.
Silver surged past ₹1,23,000 per kg, indicating strong demand in precious metals.
Currency & Volatility
The Indian Rupee remained at record low levels, showing mild strength against the US Dollar and Euro but weakness against the British Pound.
Volatility Index (VIX) eased from 11.75 to 11.29, reflecting reduced market nervousness.
Put-Call Ratio rose to 1.14, suggesting balanced positioning with a mild positive bias.
FII & DII Activity
Foreign Institutional Investors (FIIs) sold shares worth ₹1,430 crore.
Domestic Institutional Investors (DIIs) supported the market with strong buying of ₹4,345 crore.
This indicates that Monday’s rally was largely DII-driven, with FIIs still cautious.
Corporate Updates
NMDC reported a 10% rise in iron ore production and 8% higher sales.
Coal India posted a 9.4% production increase with 7.6% higher offtake.
IGL bagged a solar power project order with Rajasthan Vidyut Utpadan Nigam, marking diversification beyond its core gas business.
Puravankara announced a new 1.43-acre real estate project in Mumbai with an estimated revenue potential of ₹2,700 crore.
United Breweries partnered with Elios Breweries in Andhra Pradesh to produce 4.5 lakh beer cases annually.
Market Outlook
Analysts suggest that Nifty 50 may trade within a range of 24,500 (support) to 24,800 (resistance), while Bank Nifty could oscillate between 53,500 and 54,500.
Option data indicates heavy call writing at 25,000 and put writing at 24,500, signaling a range-bound session with mild positive bias.
Upcoming Earnings
Results expected today include:
JSW Cement
All Time Plastics
OSA Mineral Development Corporation
The next major earnings season will kick off in October, starting with the IT sector, where value buying has already begun after recent underperformance.
