First Trade: Sensex adds 135 points, Nifty at 23,731

Indian equities in Thursday's session (February 6) tracking positive Asian markets opened higher. At the start, the BSE Sensex gained 0.17 per cent or 135.29 points to 78,406.57, while the NSE Nifty50 traded higher by 0.15 per cent or 34.85 points at 23,731.15. Meanwhile, broader markets also continued to exhibit resilience, with both Nifty Midcap 100 and Nifty Smallcap 100 in the green zone.

Sectorally, all indices gained in early trade, with IT, PSU Bank and Realty leading the gains, followed by FMCG and financials.

Primarily today's gains come amid 

positive global cues and a drop in the US dollar below 107.50. Also, crude oil prices fell to $71.20 due to rising US inventories and US-China trade tensions, which is likely supporting market sentiment.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "The market is moving into a consolidation phase on expectations of a pick up in growth in the coming quarters."

In the near term the market is likely to get a mild boost from a possible 25 bps rate cut by the MPC tomorrow. Even though steadily depreciating INR doesn’t provide a favourable macro backdrop for a rate cut, the MPC is likely to go for a 25 bp cut tomorrow to keep the optimistic momentum provided by the Budget going, added Vijaykumar.

Technicals

Anand James, Chief Market Strategist, Geojit Financial Services on the Nifty outlook said, "While the pause on test of the 50day SMA unfolded yesterday on expected lines, the dips thereof appeared modest, cautioning us to expect another day of consolidation. We will continue eying 23550 towards this end and the extended targets of 24020-24226 may have to wait."

Within this construct, it might still be possible to see brief spikes to 23860-909, but they are less likely to sustain, today, he added.
 

Asian markets

Most Asian equities advanced in today's session mirroring Wall Street gains in a week influenced by Donald Trump's trade tariffs as well as lacklustre earnings from tech majors. Japan's Nikkei was up 0.21 per cent, while Hong Kong's Hang Seng and Singapore's Straits Times also traded higher by up to 0.5 per cent. Meanwhile, SET Composite and Jakarta Composite traded with a cut of up to 1 per cent.