Indian Markets Show Signs of Recovery

On Tuesday, the Indian equity benchmark indices, BSE Sensex and Nifty50, opened in positive territory. While BSE Sensex was above 78,500, Nifty50 was above 23,750. At 9:18 AM, BSE Sensex was trading at 78,540.17, up 47 points or 0.059%. Nifty50 was at 23,767.20, up 14 points or 0.058%.

This slight recovery follows a significant five-day decline last week. Analysts attribute this pause to typical market behavior influenced by oversold positions in major index stocks.

Ajit Mishra, SVP, Research, Religare Broking, advises participants to maintain a cautious stance with a negative bias on the index until clear signs of a rebound emerge. He also highlights opportunities in individual stocks and reiterates a preference for the pharma and healthcare sectors for long positions.

Experts note resistance levels at 23,850-23,870 and a bearish gap at 24,000-24,150. Support levels are identified at 23,600-23,500, with potential decline towards 23,350 if breached.

Global Markets and Commodities

Major US indices closed higher on Monday, driven by the performance of prominent technology companies. Trading activity in Asian markets remained constrained due to limited holiday participation.

Gold prices remained stable ahead of Christmas holiday trading, while the dollar strengthened amid expectations of extended higher US interest rates.

Foreign Portfolio Investors (FPIs) sold Rs 168 crore, while Domestic Institutional Investors (DIIs) purchased Rs 2,228 crore worth of shares. The FII net short position increased to Rs 1.56 lakh crore.