Market Today: Sensex Gains 174 Points, Nifty Opens Above 24,100; IT Stocks Lead Early Trade

Stock Market Today, August 28: Indian equity markets opened on a positive note on Friday, August 28, with the benchmark indices attempting to recover after the previous session’s weakness. At 9:17 am, the Sensex was trading at 77,107.72, up 174.13 points or 0.23%, while the Nifty traded at 24,122, higher by 31.15 points or 0.13%.

Global technology sentiment is providing some support to Indian equities. Nvidia’s strong quarterly results and upbeat guidance have continued to fuel the AI trade, with the Nasdaq gaining around 1.5% overnight. This strength in the tech space is also visible in the domestic IT space, with the Nifty IT index rising 1.58% in early trade.

Metal, media, pharma, healthcare and consumer durables stocks are also trading higher,

while financials remain under pressure. The Nifty Financial Services index is down 0.29%, Nifty Bank is lower by 0.17% and Nifty Private Bank has declined 0.23%.

V K Vijayakumar, chief investment strategist at Geojit Investments Ltd, said, “Brent crude has again surged to above $89 since there are no signs of any diplomatic solutions to reopening the Strait of Hormuz. Total lack of clarity on this issue is weighing on the market. Meanwhile, the AI trade continues to boom following the good results and great guidance from Nvidia. Bond yields in the US continue to remain firm following concerns on the inflation front.”

He added that all these factors have been weighing on the Indian market keeping the Nifty within the 24300-24600 range. A breakout above the range will happen only if some of the Nifty heavyweights like HDFC Bank, RIL, L&T and the IT majors participate in the rally. For this to happen, the major headwinds of elevated crude price and high US bond yields have to disappear or at least weaken. The commentary from the Fed chief Kevin Warsh at Jackson Hole symposium today will be keenly watched by the market for any clues on interest rates.

The broader market is showing relatively better resilience in early trade. The Nifty Smallcap 250 is up 0.27%, Nifty Smallcap 100 has gained 0.23% and Nifty Microcap 250 is higher by 0.34%. The Nifty Midcap Select is also marginally positive, although the Nifty Midcap 100 and Nifty Midcap 150 are largely flat.

India VIX has also eased 2.46% to 10.80, indicating relatively contained near-term volatility.

Ponmudi R, CEO of Enrich Money, a Sebi-registered online trading and wealth-tech firm, said, “Indian equity markets are set for a cautiously optimistic start, though lingering geopolitical and macroeconomic uncertainties are likely to temper risk appetite, with investors expected to remain selective and prone to booking profits at higher levels.Crude oil, though off its recent peak, remains at relatively elevated levels, with WTI hovering near the $83-84 per barrel mark. Diplomatic progress between Iran and Oman on managing traffic through the Strait of Hormuz has helped ease some of the acute supply-risk premium that had built into prices in recent weeks.”

He added that global cues are mixed but broadly supportive. Wall Street’s benchmark indices closed largely flat to higher overnight, even as the latest PCE inflation print — the Federal Reserve’s preferred inflation gauge — came in slightly above expectations, leaving the near-term policy outlook uncertain. Sentiment in technology and semiconductor stocks, however, was clearly lifted by Nvidia’s blowout quarterly results, which triggered a broad rally across AI-linked names in the US, helping the Nasdaq end about 1.5% higher.

“Asian markets are trading mixed this morning, with Japan’s Nikkei notably firmer while South Korea’s Kospi remains on the back foot, reflecting the push-and-pull between AI-driven optimism on one side and caution over the interest-rate outlook on the other,” Ponmudi said.

Investors are now closely watching Fed Chair Kevin Warsh’s Jackson Hole keynote for signals on the US interest-rate outlook. With the latest PCE inflation reading coming in slightly above expectations, markets will look for clues on the Federal Reserve’s September policy decision and the broader trajectory of interest rates. Any shift in expectations around US rates could have implications for emerging-market flows, the rupee and Indian equities.

Nifty Technical View

Ponmudi said the Nifty is likely to maintain a cautious bias as the index continues to face selling pressure at higher levels. The 24,300-24,400 region, which also coincides with the 200-day EMA, remains the key resistance zone. On the upside, the 24,300-24,400 zone remains a crucial resistance band that continues to cap recovery attempts. A sustained breakout and close above 24,400 would be needed to improve the technical structure and revive upward momentum toward higher levels.

“On the downside, 24,100–24,000 now forms the immediate support zone. A sustained break below the 24,000 psychological mark could drag the index toward the 23,800 zone. The RSI stands around 43, below the neutral mark, indicating weakening momentum. Overall, the near-term technical outlook remains cautious. The index needs to decisively reclaim 24,400 to establish stronger bullish momentum, while sustained trading below 24,200 could keep the index subdued and limit further recovery attempts,” he added.