The benchmark equity indices opened higher on Friday, supported by gains in information technology stocks, while investors remained cautious ahead of US Federal Reserve Chair Kevin Warsh’s remarks at the Jackson Hole Symposium.
During early trade, the Sensex was trading 193.02 points, or 0.25 per cent, higher at 77,126.61, while the Nifty gained 33.80 points, or 0.14 per cent, to 24,124.65.
Commenting on Nifty technical outlook, experts said that the maximum Put open interest is concentrated at the 24,000 and 23,800 strikes, indicating these are the levels where traders expect buying support to emerge.
“On the upside, maximum Call open interest is clustered at 24,200 and 24,300, highlighting the zone where sellers continue to cap advances,” as per the expert.
“A decisive break below the prior swing low of 24,025 would confirm a positional trend reversal. On the upside, the recent swing high of 24,378 is likely to act as immediate resistance,” another expert added.
IT stocks led the gains on the Nifty, with Tech Mahindra, Tata Consultancy Services (TCS) and Infosys emerging as the top performers in the index.
The broader market also opened on a positive note, with the Nifty MidCap index rising 0.03 per cent and the Nifty SmallCap index gaining 0.16 per cent.
Among sectoral indices, the Nifty IT index advanced more than 1 per cent, outperforming the broader market. The Nifty Metal and Nifty Media indices also traded stronger. In contrast, the Nifty Private Bank and Nifty Financial Services indices underperformed.
Experts said that market participants are closely tracking developments from the Jackson Hole Symposium, particularly the US Federal Reserve’s outlook on interest rates and the broader direction of monetary policy, which could influence global equity markets.
“Brent crude has again surged to above $89 since there are no signs of any diplomatic solutions to reopening the Strait of Hormuz. Total lack of clarity on this issue is weighing on the market,” an analyst stated.
(IANS Inputs)
