Markets sustain upward momentum as Sensex closes above 75K for the first time
The Indian markets sustained their upward momentum on Wednesday, buoyed by a robust performance in the broader market, albeit slightly lagging behind its Asian and European counterparts, said Vinod Nair, Head of Research at Geojit Financial Services
image for illustrative purpose
Mumbai, April 10: The Indian markets sustained their upward momentum on Wednesday, buoyed by a robust performance in the broader market, albeit slightly lagging behind its Asian and European counterparts, said Vinod Nair, Head of Research at Geojit Financial Services.
While the Nifty rose 111.05 points or 0.49 per cent to settle at 22,753.80, a fresh closing high, the Sensex gained 354.45 points or 0.47 per cent to close above the 75,000-mark for the first at 75,038.15 on Wednesday.
Investor attention remains fixated on the impending release of the FOMC (Federal Open Market Committee) minutes and US inflation data. Following the release of strong US job data, market sentiments are inclined towards anticipation of spike inflation, thereby reducing the likelihood of a near-term rate cut, Nair said.
Additionally, Fitch's recent downgrade of China's credit rating could potentially reverberate through the global economy, warranting a caution, he added.
Fitch Ratings has revised the outlook on China's long-term foreign-currency Issuer Default Rating (IDR) to negative from stable, affirming the IDR at 'A+'.
The outlook revision reflects increasing risks to China's public finance outlook as the country contends with more uncertain economic prospects amid a transition away from property-reliant growth to what the government views as a more sustainable growth model.
Wide fiscal deficits and rising government debt in recent years have eroded fiscal buffers from a ratings perspective, Fitch said.
Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty mostly remained sideways on Wednesday as investors preferred to wait ahead of the US CPI inflation data, which could potentially impact rate cuts by the US Fed.
The resistance zone is placed at 22,700-22,750, while support is at 22,600, he said.
A decisive move above 22,750 might induce a rally towards 23,000 in the short term. Since the market appears to be range-bound, buying on dips and selling on rallies might prove to be a good strategy with proper stop-loss measures, De added.
