First Trade: Sensex climbs 275 points, Nifty gains 137 points to 23,753

Indian equities after a turbulent day yesterday opened in Tuesday's session (January 7) tracking positive Asian markets. At the start, Sensex climbed 0.35 per cent or 275.05 points to 78,240.04, while the Nifty climbed 0.58 per cent or 136.6 points to 23,752.65.

Sectorally, broad-based buying led the gains today, with oil & gas and consumer durables stocks leading the gains, adding up to 1 per cent gains in the Oil and Gas index. 

Key catalysts for heightened volatility include FIIs selling Rs 7,078.30 crore of Indian equities in January, a record-low Rupee at 85.85, a spike in oil prices to $74.75 per barrel, and elevated US Treasury yields, he added.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "The fact that momentum stocks were on the back foot yesterday indicates lack of confidence by the bulls in the context of negative sentiments. Clarification by the government that there is no room for undue concern from the virus, which is not new, can facilitate a rebound in the market, led by momentum stocks."

Technical outlook

Anand James, Chief Market Strategist, Geojit Financial Services on the Nifty outlook said, "Two dojis in the last two hours hint at recovery swings early in the day. However, expect 23900 as well as 24000 to resist and attempt to keep the bias on a “sell on rallies mode”. Meanwhile, the recent low of 23263 is not far, but there is a fair possibility of the ongoing downswings to ease off without penetrating 23400."

We believe an outright fall below 23263 may take a while to evolve. Major supports below are seen at 23000 and 22260, he added.

 Asian markets 

Most Asian stocks gained in early trade as regional technology stocks mirrored overnight gains on the Wall Street. The key MSCI Asia ex Japan index was up marginally by 0.05 per cent. The Chinese markets, however, lagged as the US blacklisted two of the major tech companies.