FIRST TRADE: Indices open higher; Sensex adds nearly 300 pts, Nifty tops 23,800 levels

Indian equities after a highly volatile session opened Friday's session . At the open, Sensex was up 0.37 per cent or 292.3 points at 78,764.78, while the Nifty50 moved higher by 0.34 per cent or 81.25 points at 23,831.45.

Broad-based buying lifted sentiment on the D-Street, with only mild weakness in the pharma space. Sectorally, top gainers in early trade were consumer durable, bank and financial services stocks.

Prashanth Tapse, Senior VP (Research), Mehta Equities said, "With just three trading days left in 2024, Nifty is up 9.3 per cent year-to-date, on track for its ninth consecutive year of gains. While positive catalysts such as lower interest rates, a strong economy, and improving earnings estimates drive optimism, concerns remain due to FIIs selling Rs. 250,989 crores in FY25, a slowing economy, a weakening rupee at 85.26, and Nifty trading below its 200-day moving average. 

The strongest headwind for the market now is the FII selling triggered by strong dollar (dollar index staying above 108) and attractive US bond yields with the 10-year yielding 4.35%. A change in FII strategy from selling to buying will happen when macros indicate recovery in growth and corporate earnings, noted Dr. Vijaykumar,  Chief Investment Strategist, Geojit Financial Services.

Nifty Technicals

Akshay Chinchalkar, Head of Research, Axis Securities said, "The Nifty could not sustain its opening advance for the third straight day, with the market failing to break above the 200-day average as it tested the underside. The last three candles continue to have both long upper and lower shadows with narrow real bodies, which means plenty of indecision is in play. Support sits between 23500 and 23640."

Note that a daily close above 24150 - where a down-gap opened up on the 19th of December - is needed for the immediate, prevailing nervousness to be negated, he added.

Asian markets

The key MSCI ex-Japan index traded with a negative bias down 0.02 per cent at 574.43 points. Amid thin volume in the year-end trading most Asian stocks traded in the green with the Japan's Nikkei up over 1 per cent.