The Indian markets sustained their upward trend in December, with both indices starting higher on Tuesday.
The Nifty 50 index commenced trading at 24,367.50 points, rising by 91.45 points or 0.38 percent, whereas the BSE Sensex started at 80,529.20 points, an increase of 281.12 points or 0.35 percent.
Experts noted that the Indian stock markets have ignored the GDP figures and, being in an oversold zone, could rise and experience a rally as the February budget nears.
Ajay Bagga, a specialist in banking and markets, stated that 'The Indian markets disregarded the GDP figures and rose on Monday. The government has eliminated the windfall tax on crude oil, aviation turbine fuel (ATF), petrol, and diesel exports, which is expected to boost Oil and Energy sector leaders.
Overall, even though there are recommendations to 'sell on every rise', we are buying in the Indian markets and expect a rally ahead of the Union Budget on February 1st.
He mentioned that US markets predictably hit another record high, driven by the technology sector. Asia is following the positive trend seen in the US, with no social media posts from Trump as of yet.
Except for NIFTY FMCG, all sectoral indices on the NSE opened with gains. Nifty Bank, Nifty Auto, Nifty IT, Nifty Media, and Nifty Metal all showed increases at the time of this report.
Out of the Nifty 50 index, 41 stocks saw an increase at the opening, 7 declined, and 2 remained unchanged. Shriram Finance was the leading gainer, followed by JSW Steel, ONGC, BEL, and HDFC Bank.
The Nifty increased for the second consecutive day and is approaching a point where a potential head-and-shoulders bottom could be confirmed. The key level to monitor is 24,315, and any close above this resistance will trigger the pattern with a minor upside target around 24,800, followed by a larger target near 25,500.
Akshay Chinchalkar, Head of Research at Axis Securities, indicated that any drop pushing the market below 23,873 after pattern confirmation will require a reevaluation of the bullish perspective. In the meantime, the 24,360 - 24,540 range is still significant.
In several other Asian stock markets, the majority of indices experienced a rise today, except for China's and Hong Kong's Hang Seng index. Japan's Nikkei 225 index went up by more than 1.7 percent, Taiwan's Weighted Index increased by 1.14 percent, South Korea's KOSPI surged 1.78 percent, and the Jakarta Composite advanced by 1.49 percent.