Mumbai, Nov 3 (IANS) Indian equity markets opened higher on Tuesday for the second consecutive day this week amid declining crude prices, strong Q2 earnings and foreign investors turning buyers.
Sensex jumped as much as 0.87 per cent or over 600 points to hit an intraday high of 76,358.79 in early deals.
Nifty traded at 23,610.70, an increase of 0.72 per cent or about 170 points.
On the sectoral front, financial services led the gains as Nifty Financial Services ex-Bank jumped 1 per cent.
Meanwhile, Nifty Chemicals, Nifty FMCG and Nifty Media surged up to 0.77 per cent. Private bank, cement, information technology (IT) and consumer durables indices were also trading in the green.
On the other hand, healthcare and energy stocks witnessed profit booking.
Analysts said that circumstances are ideal for the continuation of the ongoing market rally.
“Decline in Brent crude to $104, further weakening of the AI trade, continuing flow of good Q2 results and foreign institutional investors (FIIs) turning buyers have potential to accelerate the ongoing rally," they said.
The market experts also said Nifty has reclaimed its 50-day EMA near 23,170, while RSI improved to 61.03, above its average of 47.90, indicating strengthening momentum. PCR at 1.28 also reflects a positive derivatives setup. Immediate support is placed at 23,200-23,300, while resistance is seen at 23,600-23,700.
"Massive value buying along with big short covering leads to such sharp surges in stocks, even in megacaps. The takeaway from this experience is that patient value buying will be rewarded," according to them.
Analysts added that short positions in many quality large-caps, created by bears on expectations of continued FII selling are now unwinding as circumstances change. While the AI trade has slightly weakened, it is only a correction, not yet a crash, and results of many AI companies continue to be good.
On Monday, FIIs continued their buying momentum for the second consecutive session, recording net equity purchases of Rs 3,114 crore. Domestic institutional investors (DIIs) remained net sellers for the second straight session with outflows of Rs 392 crore.
Moreover, the results of the US mid-term elections due tomorrow and its impact on geopolitical dynamics will be keenly watched by the market in the coming days.
--IANS
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