Stock market rises from recent slump: Sensex and Nifty open with strong gains

Mumbai (Maharashtra) [India], October 27 (ANI): Following a sharp decline in the indices during Thursday's market closing, the stock market made a positive start today, showing signs of an upward momentum and reclaiming lost ground from the previous week.
The Sensex opened with a gain of 520.41 points at 63,650.26, and the Nifty started 149.95 points higher at 19,006.80. In the Nifty companies, 47 registered advances, while 3 saw declines.
Among the Nifty firms, NTPC, Apollo Hospital, SBI, Adani Enterprises, and Coal India were the top gainers, while Hindustan Unilever, Ultra Cement, and Asian Paints faced losses.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Nifty nosedived over 250 points or 1.5 per cent to close below 19000 level of 4-month low in the expiry of October series. It dropped for the sixth consecutive session, tracking weakness in global equities due to concerns over US Treasury yields and the Middle East conflict. Today's rally is more of dead cat bounce technically. Nifty has opened up 100 points plus but until it crosses above 19767 and close above that level, trend will remain down".
He added, "Fears of elevated US inflation data, rising US 10-Year Bond Yield to 16-year high at 5 per cent level on ahead of US Fed policy meeting to be release next week. Weak earnings by Alphabet, Meta Platforms and geo-political tension in the Gulf region pulled down across the global markets between 1-3 per cent."
Nifty faced a significant dip of over 250 points or 1.5 per cent, closing below the 19,000 level, marking a 4-month low in the October series.
This decline continued for the sixth consecutive session, in line with the weakness in global equities due to concerns regarding US Treasury yields and the Middle East conflict.
Although today's market opening showed positive movement, it is primarily considered a technical "dead cat bounce." For a sustained upward trend, Nifty needs to cross the 19,767 mark and close above it.
"In the domestic front, continued FIIs selling, rising oil price and near record high USDINR to above 83 pulled down Nifty nearly 1000 points or 5 per cent in the six trading sessions. Technically, Nifty is hovering near its crucial 200-DEMA level at 18800. Index has corrected by more than 1000 points in the last six sessions and formed Three Black Crows candlestick pattern with lower highs formation from the last six sessions", said Aggarwal
Aggarwal said, "On dips, focus remains on IT, Pharma, FMCG, Metal, Banking with bullish bias over medium to long term. Selected mid and small cap stocks can be picked by investors in staggered manner. We remain bullish on India with long term approach. This temporary correction is an opportunity for long term investors".
The market has been affected by fears of high US inflation data, as well as a 16-year high in the US 10-Year bond yield, reaching the 5 per cent level, just ahead of the US Fed policy meeting scheduled for next week.
Weak earnings report from companies like Alphabet and Meta Platforms, along with geopolitical tensions in the Gulf region, have weighed on global markets, causing declines ranging from 1 per cent to 3 per cent.
On the domestic front, continued selling by foreign institutional investors (FIIs), rising oil prices, and the USD-INR exchange rate nearing its record high of over 83 have led to a nearly 1,000-point or 5 per cent drop in Nifty over the past six trading sessions.
From a technical perspective, Nifty is hovering near its crucial 200-Days Exponential Moving Average (DEMA) level at 18,800. The index has experienced a correction of over 1,000 points in the last six sessions and has formed a bearish "Three Black Crows" candlestick pattern with lower highs observed over the same period.
Investors are advised to focus on sectors such as IT, Pharma, FMCG, Metal, and Banking, maintaining a bullish bias over the medium to long term.
This temporary correction presents an opportunity for long-term investors, and we maintain a positive outlook on India's market with a long-term approach. (ANI)