Mumbai, February 25: The Indian equity markets opened on a strong note on Wednesday, tracking a recovery in technology stocks on Wall Street overnight, with IT shares emerging as the key drivers of early gains.
Sensex and Nifty Rise in Early Trade
As of 9:30 am, the BSE Sensex advanced 559 points, or 0.69 per cent, to 82,785. The NSE Nifty 50 climbed 157 points, or 0.62 per cent, to 25,582.Broader markets mirrored the positive trend. The Nifty Midcap 100 index gained 0.27 per cent, while the Nifty Smallcap 100 rose 0.46 per cent, indicating steady participation beyond frontline stocks.
Sectoral Indices Trade Firm; IT Tops Gainers
All major sectoral indices traded in positive territory during early hours.The Nifty IT index outperformed with a sharp gain of 1.91 per cent, reflecting optimism after a rebound in US technology counters. The Nifty Metal index also registered strong momentum, rising 1.43 per cent.
Cautious Undertone Amid Global Risks
Despite the upbeat opening, market participants remain watchful of global developments. Persistent geopolitical tensions between the US and Iran and firm crude oil prices are expected to keep overall sentiment measured.Concerns surrounding disruptions in global technology stocks linked to artificial intelligence developments are also weighing on broader risk appetite.
Previous Session Sees Sharp Sell-Off
In the previous session on Tuesday, which coincided with the monthly derivatives expiry, the Nifty witnessed a sharp correction. The index declined 259 points to close at 25,459.The sell-off resulted in an erosion of nearly Rs 2.85 lakh crore in investor wealth among BSE-listed companies.
Key Technical Levels for Nifty and Bank Nifty
Market participants are closely tracking technical indicators for near-term direction.The 200-day Exponential Moving Average, currently placed around 25,240, is seen as a crucial support level for the Nifty. On the upside, the 25,640 to 25,770 zone is expected to act as an immediate resistance band.
Immediate support for the Nifty is placed at 25,300, while resistance lies in the 25,600 to 25,700 range.
For the Bank Nifty, immediate support is positioned in the 60,900 to 60,600 zone, while resistance is seen around the 61,500 to 61,700 range.
Asian Markets Trade Higher
Asian equities traded mostly in the green during early trade. China’s Shanghai index gained 0.87 per cent, while Shenzhen rose 0.94 per cent. Japan’s Nikkei advanced 1.44 per cent, Hong Kong’s Hang Seng index added 0.46 per cent, and South Korea’s Kospi surged 2.33 per cent.Wall Street Closes Higher
US markets ended higher overnight, providing positive cues to domestic equities. The Nasdaq rose 1.05 per cent, the S&P 500 gained 0.77 per cent, and the Dow Jones added 0.76 per cent.FII and DII Activity
On February 24, foreign institutional investors were net sellers of equities worth Rs 103 crore. In contrast, domestic institutional investors remained supportive, purchasing equities worth Rs 3,161 crore.The market now awaits further global cues and institutional flows to determine whether the early momentum can sustain through the session.
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