The Asian stocks appear to have joined the global stock rally as the BSE Sensex index gained 490 points on Thursday. The positive market sentiment in the Indian equities seems to be driven by Wednesday’s uptrend in their Western counterparts.
As a result, the benchmark BSE Sensex opened higher on Thursday. After losing some of its gains, the index closed at 64,081 points. This was still well below the weekly high of 64,452. A similar uptrend was observed in the Nifty 50 index which gained 144 points during today’s session.
The Indian automobile giant Tata Motors released its Q2F24 results on Thursday. The results showed that the commercial vehicles sector grew steadily in the second quarter of the current fiscal year. The automaker reported a net profit of ₹3,764 crore on a YoY basis. These upbeat results lifter the BSE Sensex index up.
The US Federal Reserve decided to keep the rates the same in the recently released FOMC statement. This marks the second consecutive FOMC meeting which ended without a rate hike. This decision has been taken well by global investors as the Japanese, Hong Kong and Indian Stocks surged on Thursday.
Indian equities have faced a deep correction in the past few weeks. Consequently, SENSEX is still down more than 5% from its yearly high. I would like to see a reclaim of the 64,800 points level before calling the ongoing recovery a proper trend reversal.
The double top formation around 67,620 is giving a bearish outlook to the BSE SENSEX forecast. However, the index remains above its 200 MA and the 62,300 support level. As long as these two levels hold, bulls have nothing to worry about.
In case of a breakdown below 62,890, many bulls may start to unwind their long positions.
This post was last modified on Nov 02, 2023, 11:53 GMT 11:53