Indian Markets Surge Over 400 Points as Global Cues Boost Sentiment

Indian benchmark indices started the week on a strong note, with the BSE Sensex surging over 400 points and the NSE Nifty50 crossing 22,500. The rally was driven by positive global cues, particularly after softer-than-expected US jobs data reduced expectations of further rate hikes by the Federal Reserve. As of 9:15 AM, the Sensex was trading at 72,377.27, up 467.57 points or 0.65%, while the Nifty stood at 22,532.40, higher by 110.45 points or 0.49%. The GIFT Nifty also indicated a robust opening, with futures quoted at 22,662.50, up 132 points.

Asian markets followed Wall Street's positive performance from the previous session, with Japan's Nikkei 225 gaining 2.58% and Australia's S&P ASX 200 advancing 0.37%. US equities ended the week on a high, with the Dow Jones, S&P 500, and Nasdaq Composite rising 0.49%, 0.73%, and 1.19% respectively. The yield on the 10-year US Treasury note stood at 5.24%. Crude oil prices eased, with Brent crude December futures falling 0.64% to $101.57 per barrel, while precious metals like gold and silver rose as rate-hike bets eased.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that Indian benchmark indices experienced significant profit-booking during the shortened trading week, with the Nifty falling 3.10% and the Sensex losing nearly 2,000 points. Consumer Durables and Auto sectors were among the worst performers. Chouhan identified key support and resistance levels for the indices, suggesting a technical pullback due to the oversold zone. For the Nifty, the support zone is 22,200-22,100, and the resistance area is 22,500-22,600. For the Sensex, the support zone is 71,300-71,000, and the resistance range is 72,200-72,500.

Despite the short-term market structure remaining weak, Chouhan expects the recent correction to trigger a technical rebound. Investors are advised to watch the key support levels closely for signs of recovery. The movement in crude prices and precious metals will also remain important factors for Indian equities, given their implications for inflation and the country's import bill.