Sensex trades over 100 points higher, hitting 36,000 in the opening tick, while the Nifty was unable to hit 10,900, against what the pre-opening trades had indicated

Equity benchmarks have begun the day on a strong note, with the Sensex conquering 36,000-mark in the opening tick, while the Nifty is just short of 10,900.

At 09:16 hrs IST, the Sensex is up 112.11 points at 36046.83, while the Nifty is up 30.80 points at 10883.70. The market breadth is positive as 480 shares advanced, against a decline of 148 shares, while 46 shares are unchanged. 

All sectoral indices are trading in the green, with maximum gains visible among PSU banks. IT, pharmaceuticals and energy indices on the Nifty have followed suit. The Nifty Midcap index is also up around half a percent. 

ONGC, State Bank of India, and HCL Tech are the top gainers, while TCS, Asian Paints and Bharti Infratel have lost the most. 

Equity benchmarks extended gains over second consecutive session as the Nifty concluded the session at 10853, up 80 points or 0.75 percent. Broader markets outperformed as the Nifty midcap and small cap rallied 1.6 percent and 1.7 percent, respectively. Sectorally, all indices ended in green led by bank, metal and pharma stocks.

The price action formed a long bull candle (compared to previous session) with lower shadow, indicating elevated buying demand. The index has registered a decisive close above upper band of last three weeks’ key hurdle of 10850 (on a closing basis), thereby confirming a breakout from bullish Triple Bottom pattern at the major value area of 10550 region. Going ahead, we expect the index to trade with a positive bias and extend the current up move towards 10930. In the coming sessions, the Nifty is likely to open on a positive note. 

However, any intraday cool off towards 10870 should be used as an incremental buying opportunity, which would assist Nifty to head towards 10930, as it is confluence of:

1. 80 percent retracement of entire decline since February high (11172), placed around 10928

2. Intermediate resistance of May high placed at 10929

We believe, the Nifty has formed a higher base around key value area of 10550, as it is confluence of:

3. the key value area of 10550 that the Nifty managed to hold on three occasions, since June 2018 despite weak global cues

4. 78.6 percent retracement of last leg of rally (10418-10893), at 10520

5. 100 days SMA placed around 10542

The Indian rupee opened flat at 68.72 per dollar on Tuesday versus 68.72 yesterday.

The dollar-rupee July contract on the NSE was at 68.86 in the previous session. July contract open interest increased 2.40 percent in the previous day, said ICICIdirect.

We expect the USD-INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions, it added

Pre-opening trades indicate a positive start to the Sensex and Nifty. The Sensex is hovering near 36,000-mark, while the Nifty is well above 10,900-mark.

At 09:03 hrs IST, the Sensex is up 23.39 points or 0.07% at 35958.11, and the Nifty up 94.90 points or 0.87% at 10947.80.

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