Mumbai, August 28: Major stock market indices opened higher on Friday, buoyed by a surge in information technology (IT) stocks. However, investors remained cautious ahead of remarks from Federal Reserve Chairman Kevin Warsh at the Jackson Hole symposium.
In early trading, the Sensex rose by 193.02 points, or 0.25%, reaching 77,126.61, while the Nifty gained 33.80 points, or 0.14%, to settle at 24,124.65.
Market experts noted that the maximum put open interest for the Nifty is concentrated at the 24,000 and 23,800 strike levels, indicating potential buying support at these points.
Experts stated, “The maximum call open interest is present at the 24,200 and 24,300 strike levels, suggesting that selling pressure may persist within this range, potentially curbing upward momentum.”
Another analyst mentioned, “If the Nifty decisively falls below the previous swing low of 24,025, it will confirm a shift in medium-term trends. Conversely, the recent swing high of 24,378 may act as the nearest resistance level.”
IT stocks led the gains in the Nifty, with Tech Mahindra, Tata Consultancy Services (TCS), and Infosys being the top performers.
The broader market also showed a positive trend. The Nifty Midcap index rose by 0.03%, while the Nifty Smallcap index increased by 0.16%.
Sectoral indices saw the Nifty IT index climb over 1%, making it one of the best-performing indices. The Nifty Metal and Nifty Media indices also exhibited strength. In contrast, the Nifty Private Bank and Nifty Financial Services indices remained relatively weak.
Experts believe that market participants are closely watching the Jackson Hole symposium, particularly regarding potential shifts in U.S. Federal Reserve interest rates and monetary policy, which could impact global stock markets.
An analyst commented, “Brent crude oil prices have once again surpassed $89 per barrel, as there are no signs of a diplomatic resolution regarding the reopening of the Hormuz Strait. The lack of clarity on this issue is affecting market sentiment.”
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