Thursday's Trade: Sensex, Nifty To Open In Green As Global Cues Rally; Key Triggers Here

Indian market is likely to open in green on Thursday on the back of a positive trend in global cues. Also, in the early hours, Gift Nifty traded higher, hinting at a positive opening for Sensex and Nifty 50. Asian markets were up with Hong Kong shares outperforming, while Wall Street ended with gains after tech-darling Nvidia recorded strong earnings. In the previous session, the Sensex and Nifty 50 were higher driven by banking stocks.

Gift Nifty, formerly known as SGX Nifty, traded at 19,516.5, up by 12 points or 0.06% at 7.29 am on Thursday. The index opened at 19,504.5 and traded in the range of 19,521.5 to 19,481 respectively.

Meanwhile, Asian stocks surged after Wall Street gained traction as tech giant Nvidia reported better-than-expected earnings. Japan's Nikkei 225 traded up by 0.3%, South Korea's KOSPI index surged 0.7%, while the Australian index ASX 200 also traded up by 0.3%. Meanwhile, Hong Kong's Hang Seng index outperformed its counterparts by soaring 1.3%, and China's mainboard Shanghai Composite index also picked up.

Overnight, US stocks climbed after robust growth in Nvidia's quarterly earnings which led to this tech stock rally impressively. Also, the 10-year treasury yield retreated slightly from its 16-year highs after weak US business activity data which further added to the upside.

The Dow Jones Industrial Average index surged by 184.15 points, while the S&P 500 index zoomed by 1.10%. The Nasdaq Composite Index advanced by 1.6%.

At home, on Wednesday, the Sensex ended at 65,433.30, up by 213.27 points or 0.33%, while Nifty 50 advanced by 47.55 points or 0.25% to end at 19,444. However, the BSE Midcap and Smallcap index climbed by 130.47 points and 215.76 points respectively. Banking stocks were stellar performers, followed by capital goods, consumer durables, and metals stocks. Auto, power, and utility stocks witnessed marginal selling.

On the trading performance on August 23, Vinod Nair, Head of Research at Geojit Financial Services said, "Global markets have restrained from making significant moves as they await the outcome of the central bankers' gathering at Jackson Hole scheduled for Friday. With the earnings season nearing its end, the heightened possibility of another rate hike in the US, along with the resultant increase in bond yields, is expected to keep the global market's volatility high. On the domestic front, sentiments remained positive, backed by strong demand in the banking sector, though IT and pharma limited the gains."

For Thursday's trade, Ajit Mishra, SVP - Technical Research, Religare Broking said, "Interestingly, both Nifty and the banking index, have reached their immediate hurdle of short-term moving average i.e. 20 EMA together. Their alignment and a decisive breakout above the hurdle would help in extending the recovery else the tone may again turn dull. Amid all, we reiterate our view on maintaining focus on stock selection."

On Nifty 50, Rupak De, Senior Technical analyst at LKP Securities said, "The Nifty continues to trade within the broader range of 19,300 and 19,500. On the daily timeframe, the headline Nifty index has been fluctuating between the boundaries set by the 21-day Exponential Moving Average (EMA) at 19,471 and the 50-day EMA at 19,281. Looking ahead, the Nifty is likely to maintain this range-bound movement as long as it remains within these established thresholds. A significant breakthrough above the 19,500 mark could potentially trigger a rally towards higher levels."

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