Mumbai, Aug 20 (IANS) Indian equity benchmarks opened higher on Thursday — snapping a prolonged losing streak — as a decline in US bond yields improved global risk appetite and the market showed signs of a short-term reversal after being in oversold territory.
Sensex rose 558 points or 0.73 per cent to 77,468 in early deals, while Nifty 50 gained 147 points or 0.61 per cent to 24,225.45.
Among sectoral indices, Nifty IT, Nifty MidSmall IT & Telecom and Nifty Metal were top gainers and surged up to 1 per cent in the morning trade.
The market had been steadily downtrending for the past 12 trading sessions, but analysts said the latest move suggested scope for a mild recovery aided by short-covering.
“Nifty rebounded from the crucial Fibonacci support of 24,060, with a bullish reversal candle taking shape on the four-hour chart near the rising channel support, signalling a potential recovery,” according to them.
A sustained move above the 24,200-24,260 zone could extend the pullback towards 24,380-24,540, while 24,060 remains the key support level. A break below the level could drag the index towards 23,575, they said.
Moreover, FIIs extended their buying streak for the second consecutive session, purchasing equities worth Rs 407 crore, while DIIs also continued their buying spree for the seventh straight session and invested Rs 3,973 crore on Wednesday, as per provisional data.
Additionally, global cues remained supportive after reports that the US was considering buybacks of longer-term Treasury securities to help lower borrowing costs.
Asian bond and equity markets also traded higher. US markets ended higher on Wednesday, with the S&P 500 settling 0.21 per cent higher and the Nasdaq closing 0.16 per cent up.
Crude oil prices remained largely stable amid the US-Iran conflict. Brent crude was trading around $92 a barrel, up 0.33 per cent, while US West Texas Intermediate crude was at $84.52 a barrel, up 0.17 per cent.
–IANS
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