Sensex extends gains, up over 200 points, Nifty reclaims 10,500
The domestic market oepned higher on Thursday, but pared gains in seconds with the Nifty50 slipping below 10,500 level, tracking Asian markets, which flirted with six-week lows as US bond yields crept up toward four-year highs.
At 9:18 am, the S&P BSE Sensex was trading at 34,135, up 52 points, while the broader Nifty50 was ruling at 10,482, up 5 points.
In the broader market, the BSE Midcap and the BSE Smallcap outperformed, gaining 0.4 per cent and 0.6 per cent, respectively.
Market breadth, indicating the overall health of the market, remained positive. On the BSE, over 950 stocks rallied, over 300 stocks declined, while 43 remained unchanged.
Brokerage Angel Broking believs 10,528-10,614 on Nifty would be seen as immediate hurdles and unless index doesn’t cross this wall, the market will remain under pressure.
"A move beyond 10614 doesn’t change the near term trend; but, it would certainly extend the bounce back towards 10730 – 10780 levels. On the lower side, 10423 – 10347 remains to be intraday supports," said the technical report by the brokerage.
"We reiterate that traders need to be very selective as the volatility is likely to remain on the higher side and also with such global issues; the opening direction is mainly dictated by the overnight cues from the global markets. Hence, one should avoid taking any kind of undue risks and should rather remain light on positions. In fact, it would be a prudent ploy to stay light and avoid making any kind of bottom fishing till the definite signals emerge,” the report added.
Asian markets dipped. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent in early Thursday trade, staying near its six-week low touched on Tuesday.
Japan’s Nikkei gained 0.6 per cent, though it was still down more than six per cent so far this week. MSCI’s broadest gauge of the world’s stock markets has lost ground in seven of the last eight sessions until Wednesday, a period in which it slumped 6.8 per cent.
Overnight, US stocks ran out of steam after an early surge, in a sign that investors are still spooked by the market’s recent retreat and wary more fallout is to come.
The Dow Jones Industrial Average fell 19.42 points, or 0.08 per cent, to 24,893.35, the S&P 500 lost 13.48 points, or 0.50 per cent, to 2,681.66 and the Nasdaq Composite dropped 63.90 points, or 0.9 per cent, to 7,051.98.