Sensex gains 250 pts from day's low, Nifty near 25,900: Positive global cues among key factors behind market rise

Sensex, Nifty rise in trade. 

The equity benchmark indices recovered from early losses to trade higher on Friday, tracking firm global trends and buying in heavyweight stocks.

The Sensex climbed some 250 points from the day's low to 84,712.79, while the Nifty advanced above the 25,850-mark to 25,872.25.

Key factors behind market rise

1) Global cues: Asian markets traded higher, with South Korea’s Kospi and Japan’s Nikkei 225 posting gains. Futures on Wall Street also indicated a positive opening, supporting domestic equities.

"Global markets are trading mixed this Friday morning, reflecting investor caution after US indices closed lower overnight. Investors remain guarded as they assess the Federal Reserve’s latest policy signals and await upcoming economic data for clarity on the global outlook," said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

2) Crude rises: Brent crude, the global oil benchmark, fell 0.65 per cent to USD 64.58 a barrel. A decline in crude prices generally supports Indian equities.

3) Rupee rises: The rupee traded 5 paise higher at 88.64 against the US dollar in early trade, supported by softer crude prices and a weaker greenback. However, foreign fund outflows and selling pressure in equities capped gains in the domestic unit, forex dealers said.

Technical view

Anand James, Chief Market Strategist at Geojit Financial Services, said what was shaping up as a bullish continuation pattern in Nifty now appears to be evolving into a topping formation.

“Yesterday’s dips extended to our downside marker of 25,886, indicating underlying bearishness. We may see initial upswings today capped near 25,960, followed by potential down moves. A direct rise above 25,960 could delay or prevent a fall towards 25,700–25,400, though a sharp rise is less expected,” he noted.

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