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In the early hours of trading on Thursday, the BSE Sensex and Nifty50 surged despite prevailing headwinds, maintaining their upward trajectory from the previous session.

 

The BSE Sensex soared by over 390 points, while the Nifty50 comfortably surpassed the 22,300 mark, indicating a positive sentiment among investors.

 

As of 9:25 AM, the BSE Sensex was trading at 73,377.62, registering a substantial gain of 391 points or 0.54%.

 

While the Nifty50 stood at 22,316.90, reflecting an uptick of 116 points or 0.52%.

 

This bullish momentum comes in the wake of a challenging period where the Indian equity markets encountered resistance at higher levels, leading to a partial reversal of initial gains on Wednesday.

 

Analysts have attributed the pressure on the markets to persistent selling by Foreign Institutional Investors (FIIs) and elevated levels of India VIX, the volatility index.

 

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial, expressed his anticipation of the market consolidating within a broader range as election polling progresses and the results season approaches its conclusion.

 

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, offered insights into potential future movements, suggesting that a sustainable breakthrough above the immediate resistance level of 22,300 could pave the way for a higher target of 22,600 in the near term. He identified the immediate support level at 22,070.

 

Meanwhile, on the global front, Wall Street's major indexes achieved record highs on Wednesday, propelled by optimism following a smaller-than-expected rise in consumer inflation.

 

The S&P 500 and Nasdaq surged more than 1%, buoyed by hopes for potential interest rate cuts by the Federal Reserve. This positive sentiment rippled across Asian equities, mirroring gains on Wall Street, as the latest US inflation data reinforced expectations for Federal Reserve rate cuts.

 

The weakening dollar, attributed to U.S. core inflation hitting its slowest pace in three years and stagnant retail sales, bolstered arguments for rate cuts.

 

Oil prices also extended gains, supported by signs of stronger demand in the U.S.

 

However, amidst the market optimism, several stocks entered the Futures & Options (F&O) ban period on Thursday.

 

This list included prominent names such as Vodafone Idea, Birla Soft, ZEE, and others, indicating heightened volatility in those stocks.