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Benchmark indices Nifty and Sensex managed to settle marginally in the green for the ninth session in a row. The NSE Nifty 50 rose 15 points or 0.08% to settle at 17827, while the BSE Sensex gained 38.23 points or 0.06% to close at 60,431. Despite early losses, the fight between bulls and bears ended in favour of the bulls as Nifty ended the session about 100 points off the day’s low.
IT Stocks Weigh Down Indian Shares
Indian shares experienced a downturn, weighed down by IT stocks following weak quarterly earnings and a cautious outlook from the top IT firm, which flagged apprehensions over deferred spending and uncertainty in its BFSI segment. NSE Nifty IT fell over 2%, while the NSE Nifty Bank surpassed the crucial 42100 level towards the end of the session; it surged 574.60 points or 1.38% to close at 42,132.55.
Decrease in CPI Inflation in India
The decrease in CPI inflation to 5.66% in India, coupled with the moderation of core inflation, supports the decision of the MPC to keep policy rates on hold. However, anxieties grew globally after the FOMC minutes hinted at a possible “mild recession” due to the impact of banking turmoil.
Positive Trend in Bank Nifty
Bank Nifty has continued its strong upward momentum, surpassing the budget day high of 42016 with solid volume in the space. The index remains in buy mode and will likely move towards 42440-42680 levels on the upside. On the lower end, Bank Nifty has support at 41800; as long as this support is not breached, the trend remains positive.
Critical Moving Averages for Nifty
The benchmark Nifty has posted a winning streak for the ninth consecutive trading session. The critical moving averages are sitting comfortably below the current index value. The trend is likely to remain positive as long as it stays above 17,700. On the higher end, 18000 will likely act as a crucial resistance.
In conclusion, the Indian stock market continues to face various challenges, including inflation and uncertainty in the IT and banking sectors. However, the bullish sentiment and strong upward momentum of the Nifty and Bank Nifty indices suggest that there are still plenty of investment opportunities available for investors who are willing to navigate the market carefully.