Why Sensex, Nifty has been rising for last nine sessions

Petrochemical stock surges

Today’s stock market: After rising for eight straight sessions, the Nifty, Bank Nifty, and Sensex benchmark indices all started the day higher. Sensex opened at 60,364 and rose to an intraday high of 60,423 within a few minutes of the stock market opening bell today, while Nifty opened at 17,807 and reached an intraday high of 17,827. Similar to this, the Nifty Bank index started at 41,680 and eventually reached a high of 41,798.

Stock market specialists claim that the decline in the US dollar is a major factor in the increase in the broad market indices Sensex, Nifty, Bank Nifty, and others. They claimed that the Dollar Index has been steadily declining as a result of the US Fed’s dovish position on interest rate hikes, which has fueled FII interest in investing in emerging markets, including the Indian stock market. They encouraged stock market investors to look at banking, auto, capital goods, and real estate equities as they are domestically driven sectors, expecting the US dollar’s weakness to persist in the near future.

USD exchange rate
Avinash Gorakshkar, Head of Research at Profitmart Securities, explained why the Indian stock market has been increasing for more than a week: “After concerns about inflation, the US Federal Reserve raised interest rates aggressively, which caused the Dollar Index to increase from about 90 to 110. Selling by FIIs in the Indian stock market and other emerging markets was sparked by this. Yet, the US Fed has recently changed its stance on raising interest rates, which has caused the US dollar rate to plunge for about a fortnight. Because to this, FIIs are now forced to withdraw their funds from the currency market and invest them in stocks. If you look at the pattern over the past week, FIIs have been net purchasers, and I anticipate that trend to continue as long as the US dollar’s decline does.”

Vice President of Research at IIFL Securities, Anuj Gupta, commented on the forecast for the US dollar as follows: “The dollar index has immediate support set at 100 levels; if this support is broken, the index may decline to levels 98 and 96, respectively. So, as they would be shifting positions from currency to equities and other assets, we anticipate FII buying to build up momentum in the short future.”

Nifty has provided breach over 17,200 levels, and it is seeing resistance at 17,850 levels, continued Anuj Gupta of IIFL Securities. As it passes this obstacle, it will run into another one near the levels of its most recent swing high, 18,120. Similar difficulties are being experienced by Nifty Bank at its most recent swing high of 41,850. We might anticipate a new surge on Dalal Street whenever Nifty and Bank Nifty break through their resistance around swing high levels.

According to Anuj Gupta, “Banking stocks are better positioned than other segments because the Nifty Bank index is near to its swing high levels.”

Organizers of a new rally
Avinash Gorakshkar advised stock market investors to focus on segments driven by the home market “My advice to positional investors is to look at sectors that are driven by the domestic market because the US dollar is anticipated to stay under pressure. I anticipate that the new Dalal Street rally will be driven by the banking, car, capital goods, and real estate sectors.”

Stock picks for today
Avinash Gorakshkar discussed stocks to buy for a greater return in the near future “One may consider Mahindra & Mahindra (M&M), Tata Motors, and Ashok Leyland in the automotive sector. In the banking sector, my top private sector recommendations are ICICI Bank, Axis Bank, and Kotak Mahindra Bank, while my top PSU bank picks are Bank of Baroda and State Bank of India (SBI).” Shares of DLF, Shobha, and Godrej Properties were recommended by Avinash Gorakshkar to people looking to purchase real estate-related stocks.

Disclaimer: Currency Veda does not endorse the opinions or suggestions expressed above by specific analysts or brokerage firms. Before making any financial decisions, we suggest investors to consult with licenced professionals.