Domestic stocks carried forward the momentum with a higher opening as Asian markets surged ahead of the US Fed chief Jerome Powell’s highly-anticipated first congressional testimony later in the day.
A decline in US new home sales for the second straight month in January and the dovish commentary by St Louis Federal Reserve President James Bullard on rate outlook improved sentiment globally.
This morning, the Sensex rose 139.61 points, or 0.41 per cent, to 34,585.36. The Nifty50 firmed up 40.05 points, or 0.38 per cent, to 10,622.65.
YES Bank rose 2.34 per cent to Rs 333.50. Bharti Airtel, Reliance Industries, Hero MotoCorp and Tata Motors advanced.
ACC and Ambuja Cements declined up to 2 per cent. The long-due merger between the LafargeHolcim’s Indian operations, Ambuja Cements and ACC, was called off on Monday due to “current constraints”. The transfer of mines between the two was proving to be uneconomical, said experts.
PNBBSE -8.53 % fell 7 per cent after the state-owned lender told exchanges late on Monday that the quantum of unauthorised transactions using SWIFT could rise by $204.25 million, or Rs 1,322 crore.
Meanwhile, experts believe that the Nifty50 needs to take out 10,600-10,650 for any further upside.
“The hurdle zone has acted as a stiff barrier. Unless the resistance zone is taken out on a closing basis, the index is likely to start next leg down. The Nifty, however, can spend some time by forming a distribution before resuming the larger downtrend,” said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan.
“The 10,520-10,499 range is an immediate support zone below which larger downside can be expected,” Ratnaparkhi added.