Nifty gains for sixth day, Sensex opens gap-up over optimism on India-U.S. trade talks

Nifty rises for sixth consecutive session.

Benchmark index Nifty 50 extended its gaining streak to the sixth consecutive session on Wednesday, September 10, buoyed by hopes of diplomatic tensions between India and U.S. easing. U.S. President Trump announced that the tariff talks with India was set to resume, and calling PM Narendra Modi a "very good friend."

"A major positive for the market today comes from President Trump’s initiative to improve India-U.S. relations and PM Modi’s positive response to the same. However, from past experience the market should judge President Trump by his actions and not words," cautioned VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

At 09:16 a.m., the Sensex was up 350.52 points or 0.43 percent at 81,451.84, and the Nifty was up 106.10 points or 0.43 percent at 24,974.70. About 1728 shares advanced, 595 shares declined, and 168 shares unchanged.

IT stocks saw the sharpest gains in the sectoral pack, extending the cheer from the previous session. Yesterday, the rally was led by Infosys, which surged over 4 percent after the company announced that its board would consider a share buyback later this week. Banking, metals, oil & gas stocks also saw some cheer in trade, while the auto pack was the sole sectoral laggard.

“We maintain a positive yet cautious outlook on the Nifty and suggest closely tracking the performance of banking and IT majors for further cues,” said Ajit Mishra – SVP, Research, Religare Broking.

According to Vinod Nair, Head of Research, Geojit Investments, the market sentiment is likely to remain range-bound amid lingering uncertainties over global trade negotiations. "However, rising prospects of a Fed rate cut, along with supportive domestic macros, may help sustain optimism in the short term," he added.

On the technical front, Shrikant Chouhan, Head Equity Research, Kotak Securities said, "We believe the market is currently experiencing positive consolidation. For day traders, the main support zone is around 24,800."

As long as the market continues to trade above these levels, the bullish trend is likely to continue. "On the upside, 24,900 would act as a crucial resistance zone. A successful breakout above 25,000 could take the market to 25,100-25,150. Conversely, below 24,800, the uptrend will weaken. The strategy should be to buy Nifty if it crosses 24900 or sell below 24800 with a final stop loss at 24800 and 24900 respectively," he added.

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