Bulls are well-positioned for another day of record highs

Markets continue to maintain their enthusiasm, with bullish momentum showing no signs of slowing down. Bulls are well-positioned for another day of record highs, driven by increased long positions by foreign investors in index futures. Positive global cues also bolster the outlook, though some selling pressure from profit-booking at higher levels remains.

In the derivatives market, Gift Nifty closed at 25,998 on Monday night and dipped slightly to 25,990 this morning, indicating that Indian markets are set to open on a positive note today.

Global market scenario

European markets closed higher on Monday. However, Commerzbank shares fell 6% after German Chancellor Olaf Scholz criticised Italian financial group UniCredit's attempt to take over the bank. UniCredit currently holds a 21% stake in Commerzbank and has applied to increase its share to 29.9%, though the acquisition would not proceed if the German government opposes it.

The US markets ended with modest gains on Monday after fluctuating throughout the session. The Dow Jones and S&P 500 touched new records. Many analysts predict the US Federal Reserve will cut interest rates by 0.50% in November. Today's release of the business confidence index and factory output data is expected to influence market movements.

The Dow Jones rose by 61.29 points (0.15%) to close at 42,124.60, while the S&P 500 gained 16.02 points (0.28%) to end at 5718.57. The Nasdaq index climbed by 25.95 points (0.14%) to close at 17,974.30.

US futures were trading lower this morning, with the Dow down by 0.16%, S&P 500 by 0.15%, and Nasdaq by 0.18%.

US 10-year treasury bonds remained steady, offering a 3.743% yield.

Asian markets opened strong today, with Japanese markets rising by 1.5% after a holiday. China cut its banks' reserve ratio by 0.50%, a move that could lower interest rates and increase lending.

Indian markets

The Indian market extended Friday’s gains with the indices rising by over half a percent yesterday. Foreign investors made modest transactions, purchasing ₹404.42 crore in the cash market, while domestic institutions bought ₹1,022.64 crore worth of shares.

The Sensex hit a record high of 84,980.53 and the Nifty touched 25,956.00. Both indices ended at record closing levels.

On Monday, 1,768 stocks rose and 1,066 fell on the NSE, while 2,392 stocks gained and 1,719 declined on the BSE.

The Sensex ended 384.30 points higher (0.45%) at 84,928.61, while the Nifty rose by 148.10 points (0.57%) to close at 25,939.05. Bank Nifty gained 312.60 points (0.58%) to end at 54,105.80.

The midcap index climbed by 0.84% to 60,712.40, and the smallcap index surged by 1.12% to 19,548.90.

All sectors, except IT, closed higher. The PSU Bank index led the gains with a 3.41% rise, followed by the Realty index, which gained 2.23%. Oil & gas, auto, and consumer durables sectors also performed well.

Following heavy buying by foreign funds, VIP Industries shares surged by over 12%, and Finolex Cables rose by 10%.

Jewellery stocks, including Kalyan Jewellers, PC Jewellers, Radhika Jewel, Senco, Sky, Thangamayil, and TBZ, gained between 3% and 6%, with PN Gadgil jumping 10% due to rising gold prices.

The bullish sentiment in the market has strengthened, with bulls optimistic about Nifty surpassing 26,000 and Sensex crossing 85,000. However, Nifty may face significant resistance at 26,200.

Today, Nifty has support at 25,875 and 25,845, with resistance expected around 25,960 and 25,985.

Gold at new highs

Gold saw significant fluctuations yesterday, as profit booking put selling pressure at higher levels. After reaching $2,631.50 per ounce, gold closed at $2,628.50 on Monday. This morning, gold was trading at $2,629. December futures hit $2,654, with many analysts now revising gold’s 2025 target price upwards to $3,000.

In Kerala, gold prices surged by ₹160, setting a new record of ₹55,840 per sovereign. Prices are expected to rise further today.

Silver prices also climbed back to $31 per ounce.

The US Dollar Index closed higher at 100.85 on Monday and rose further to 100.99 this morning.

After early gains, the Indian rupee reversed course, losing ground. The dollar ended 12 paise lower at ₹83.44 before rebounding to close at ₹83.55.

Crude oil prices climbed on Monday morning but retreated by the evening. This morning, prices rose again, with Brent crude closing at $73.90 and reaching $74.31 in early trading. WTI was at $70.81, and UAE's Murban crude traded at $74.22.

Cryptocurrencies remained slightly lower, with Bitcoin trading at $62,850 and Ether slipping below $2,360.

Industrial metals saw mixed performance today. Copper rose 0.20% to $9,412.91 per tonne, aluminium gained 0.38% to $2,494.33, while nickel climbed by 1.01%. However, tin, zinc, and lead dropped by 0.31%, 0.81%, and 1.06%, respectively.

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Market indicators as of September 23

• Sensex 30: 84,928.61 (+0.45%)
• Nifty 50: 25,939.05 (+0.57%)
• Bank Nifty: 54,105.80 (+0.58%)
• Mid Cap 100: 60,712.40 (+0.84%)
• Small Cap 100: 19,548.90 (+1.12%)
• Dow Jones 30: 42,124.60 (+0.15%)
• S&P 500: 5718.51 (+0.28%)
• Nasdaq: 17,974.30 (+0.14%)
• USD ($): ₹83.55 (-₹0.01)
• Dollar Index: 100.85 (+0.24)
• Gold (ounce): $2,628.50 (+$6.10)
• Gold (sovereign): ₹55,840 (+₹160)
• Crude (Brent): $73.90 (-$0.82)