Opening Bell: Nifty above 17,300, Sensex adds nearly 200 points; IT, metal, auto stocks shine

The Indian markets opened in the green in line with the SGX Nifty trends on Monday. SGX Nifty Futures was trading over 100 points higher on the Singaporean Exchange around 9 am, hinting at a positive opening for the Indian markets.  

"Benchmark Indices are expected to open on a positive note today as suggested by trends on SGX Nifty," Mohit Nigam, Head - PMS, Hem Securities, had said in his pre-open market commentary 

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The benchmarks opened nearly 0.25% higher as broader Nifty opened above 17,300 and the Sensex added more than 150 points. The barometer indices opened at 17,333.05 and 58,030.41 respectively. 

The 12-share Bank Nifty was trading marginally higher at 34,400.  

Among the sectors, IT, auto and metal were leading the rally, while FMCG, PSU Bank were seen under pressure.   

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "Nifty after the 15% correction from the peak has climbed back by 10%. This resilience of the market even in the midst of uncertainties and challenges is significant from the investors' perspective. For the short-term, the biggest positive for the market is the FPIs turning buyers. Crude again back at $110 is a headwind." 

In 2022 the market will have to grapple with the tightening monetary cycle in the US, said the expert. "The RBI too will have to raise rates this year to combat rising inflation. This will  be marginally negative for rate sensitive sectors and stocks. Accenture's market beating results and excellent guidance augur well for IT stocks," he added.

"Fears of exhaustion setting in, were put aside last week, as we were keen on seeing 17500 first. Having bid time, oscillators look less excited now, and a foray into the 17500 region early today, or inability to float above 17300 could usher in weakness, that seek as far as 17160 or 16960 for support," said Anand James - Chief Market Strategist at Geojit Financial Services.

In the pre-open, the Sensex jumped nearly 300 points to trade above 58,100 as 28 shares advanced and two declined on the 30-share index.  

Earlier, Asian markets were trading higher to flat in the morning trade on Monday. Japanese Nikkei 225 was up 0.65%, Hang Seng Index at the Hong Kong Exchange stood at 0.55% and Chinese Shanghai Composite was trading flat with positive bias around 7.30 am on Monday.  

The US markets closed in the green for the fourth consecutive session on Friday. Dow Jones and Nasdaq ended with nearly 300 points gain, while S&P 500 added 51 points on Friday.  

"US Markets closed on a positive note on Friday with NASDAQ closing ~2% higher after talks between Joe Biden and Xi Jinping over Ukraine crisis ended with no major surprises. Majority of the Asian markets are also trading in green in the early Monday trade," said Nigam 

Stocks in focus 

He said stock specific actions can be witnessed in stocks such as Reliance Industries (Reliance Retail acquires 89% stake in intimate wear maker Clovia), NBCC (Received order from Administration of Union Territory of Ladakh), Jubilant Pharmova (Received ANDA approval for Doxepin hydrochloride capsules), SJVN (Secured 100 MW grid connected solar power project in Gujarat).  

"On the technical front, Immediate support and resistance in Nifty 50 are 17000 and 17500 respectively. Bank Nifty immediate support and resistance are 37000 and 36000 respectively," he added. 

(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.)