Opening Bell: Nifty above 16,900, Sensex adds nearly 200 points; realty, auto gain most

Extending gains for the sixth session in a row, the Indian markets opened marginally higher on Tuesday as oil touched two-week's low. Benchmark Nifty 50 went past 16,900 and the Sensex added nearly 200 points, minutes into trading 

The two indices opened at 16,900.65 and 56,663.87 respectively on Tuesday.  

 V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said the big positive for the Indian market is the sharp decline in FPI selling to a mere Rs 176 crore yesterday. Interestingly, the two segments which saw sustained FPI selling - financials and IT - are witnessing improving prospects, he said. "IT has bounced back smartly; financials have more room to go up. The drop in crude from $140 to $103 is a big relief and will turn out to be a tailwind for the market if the decline sustains," said Vijayakumar.

Speaking of negative, the market expert said the sharp upmove in US 10-year bond yield to 2.16 % could hurt the sentiments. "If the Fed turns more hawkish than expectations on Wednesday, that can be a headwind for equity markets globally," he added.

The 16720-850 congestion region was blown away in the face of bullish onslaught yesterday, but Nifty is sure to acknowledge 16960 today, significant by the confluence of several key averages, says Anand James - Chief Market Strategist at Geojit Financial Services. 

"Oscillators which were reluctant onlookers yesterday should straighten out today, if dips were to unfold. Thus, while averages and oscillators are willing Nifty to swing lower, patterns look stable enough to add more legs to the ongoing rally. This encourages us to extend the short term upside targets to 17300-18000. However, for the day, while the turn lower from the 16960 region is expected to be limited to 16730, slippage past the same could call for an extended consolidation period, with 16480 as the downside marker," added James.

Earlier, SGX Nifty on the Singaporean exchange had hinted at a flat to negative opening for the Indian markets as Futures index traded 35 points lower around 9 am on Tuesday. 

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Bank Nifty was up more than 2o0 points to take the index above 35,500.  

In the pre-open, the Sensex gained over 300 points to trade near 56,800 as 26 shares advanced and 4 declined on the 30-share index at 9.05 am.  

Mohit Nigam, Head - PMS, Hem Securities, said benchmark indices closed in positive terrain for the fifth consecutive session on Monday as Investor sentiments were boosted on the back of falling crude oil prices and easing of tension between Russia and Ukraine.  

He said the euphoria was magnified with the statements of Chief economic advisor V Anantha Nageswaran stating that India is well placed to counter the effects of war due to strong assumption in the budget for FY23. The reduced selling pressure from FII selling also sent positive signals to the market, said Nigam   

"On the Technical front, key resistance level for Nifty50 is 16,950 followed by 17,100, and on the downside, 16,650 and 16,500 will act as strong support. They key resistance level for bank nifty is 35,600 followed by 35,900 and on the downside 34,800 and 34,300 will act as strong support," added Nigam 

Earlier, On Tuesday morning, Asian markets were trading largely negative as Japanese Nikkei 225 was trading flat, while Hang Seng index and the Hong Kong Exchange dropped more than 3% and Chinese Shanghai Composite fell nearly 2% around 7.30 am.  

Meanwhile, the US markets ended in the red on Monday ahead of FOMC meeting. Dow Jones closed flat, while Nasdaq Composite and S&P500 dropped 2.04% and 0.74% respectively. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)