Indian Markets Open Higher on Friday, Tracking Global Gains

“The initial enthusiasm witnessed in the market yesterday couldn’t be sustained. The expected short-covering did not happen, bringing the prices down towards the close.”

“With high money muscle facilitated by the sustaining fund flows into the market, mutual fund buying will support the market during declines.”

“We believe the short-term market outlook remains positive.”

“However, a fresh bullish trend is possible only after crossing the 24,850 levels.”

“The Nifty 50 index closed marginally above the 20-SMA on a daily chart, keeping the short-term trend in recovery mode. The 25,000 strike is emerging as the primary resistance zone for the index.”

“Bank Nifty maintaining the important support zone near the 53,500 zone has indicated a significant pullback to end above the 54,000 zone, with HDFC Bank indicating prominent positive cues.”

“Gold prices remain near record highs, supported by persistent weakness in the US labour market, which has strengthened expectations of a Federal Reserve rate cut on September 17.”

“According to the US EIA, crude oil stocks jumped by 2.4 million barrels, contrary to forecasts of a 2.0 million barrel draw”

“While markets are likely to see a positive opening, the Next-Gen GST Reforms should strengthen the case for a consumption-led recovery, with auto and consumption expected to benefit the most.”

“With improving technical momentum and steady domestic inflows, the near-term bias remains positive. Traders should adopt a buy-on-dips strategy and focus on stock-specific opportunities in leadership sectors like banking, IT and auto.”