Indian Benchmarks Poised for Upward Push After Two-Day Dip

24 Jan 2024 , 08:37 AM

In Tuesday’s trading session, the Indian benchmark indices, Nifty 50 and Sensex, concluded on a lower note, with Nifty 50 settling at 21,238.80 and Sensex closing at 70,370.55.

GIFT Nifty is currently trading at a premium of almost 85 points compared to Nifty Futures’ Tuesday close, suggesting a potential gap-up start for the Indian market.

Across Asia, stock movements are displaying a mixed pattern, with traders hopeful for another positive session in China. However, Japanese markets opened on a lower note. Japanese shares faced a decline, and government bond yields increased following a slightly more hawkish tone from the Bank of Japan. Governor Kazuo Ueda stated on Tuesday that the certainty of achieving the BOJ’s projections has been gradually increasing.

A recent challenge for the Nifty has been the lack of support from the Nifty Bank. Despite positive figures from ICICI Bank over the weekend, a downturn in its major component, HDFC Bank, continued to exert downward pressure on the index. Even ICICI Bank experienced selling pressure at higher levels, closing only 2% lower after an initial gain of up to 6% at the start of the trading day.

The banking index has observed a decline of over 3,500 points from its recent record high of 48,636.

In the realm of futures and options (F&O) trading, IEX, SAIL, Aditya Birla Fashion and Retail, Delta Corp, Polycab, and Zee Entertainment are no longer under the F&O ban, effective from today’s session. However, Balrampur Chini, IRCTC, NALCO, Oracle Financial, and RBL Bank continue to remain on the ban list.