Analysts say the market will continue to trade sideways in the near term, with the Nifty hovering within a broad range of 500-600 points
Benchmark indexes for India On February 9, the Nifty and the Sensex began trading slightly higher thanks to advances in market leaders like Asian Paints, Bajaj Finance, Reliance Industries, SBI, TCS, and Titan.
Analysts predict that in the near future, markets will remain sideways, with the Nifty fluctuating between 500 and 600 points. According to Sameet Chavan, Head Research, Technical and Derivative – Angel One, “the level of 21,500 should act as a strong support zone, and till the market sustains above the same, we might witness some buying traction.”
On the higher end, the intermediate resistance zone is probably going to be between 21,800 and 21,900, with a strong barrier near 22,000.
The Nifty was up 0.1 percent to 21,754 at 9.33 am, while the Sensex was up 110 points, or 0.1 percent, to 71,539 at the same time. The fear indicator India VIX jumped by about 3% to cross the 16 threshold, suggesting that volatility may increase in the coming days.
All other sectors plunged into the sea of red, with the exception of Bank Nifty, which managed to eke out meagre gains during the first hour of trading. The worst-hit indices were Nifty Media, Metal, and PSU Bank, each of which fell more than 2 percent.
Experts in the market predict that as investors near the end of the earnings season, stock-specific activity will likely take precedence. “We expect Nifty to consolidate in the broader range of 22,000-21,400, which would help index to form a higher base and pave way for next leg of up move.
Dollar and bond yields strengthen as expectations of a rate decrease decline.
Globally, US 10-year and 2-year government bond rates continued to linger above the 4% threshold as Federal Reserve officials continue to kill expectations for an early rate drop. Furthermore, higher-than-expected unemployment claims supported a robust labour market, further reducing the likelihood of an early rate decrease.
Consequently, the US dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was flat to positive over the 104 mark. Thus, this might maintain the agility of local markets.
In the meantime, strong corporate results helped the US benchmark index S&P 500 reach a historic high by crossing the 5,000 barrier and finishing at 4,997. Gains of up to 0.2 percent were also recorded by the NASDAQ Composite and the Dow Jones, two other important indices.
Due to the Lunar New Year holidays, many markets in the Asia-Pacific area were closed entirely or in part. With a 0.6 percent gain, Japan’s Nikkei 225 achieved a significant milestone by breaking through the 37,000 barrier for the first time in 34 years, while Australia’s S&P 200 gained 0.1 percent.