In early morning trade on Friday, Indian stocks snapped a three-day losing streak and surged.

The 30-stock BSE Sensex opened higher and regained psychological support. They were at 60,000 levels. Within a few hours of the stock market’s opening bell, the BSE sensitive index reached an intraday high of 60,889 levels.

Similarly, the 50-stock NSE Nifty index gained around 280 points and reached an intraday high of 18,141. During the early morning session on Monday, the 50-stock index regained the psychological 18,000 level while rising.

According to stock market experts, key benchmark indices such as the Sensex and Nifty have risen today as wage growth in the United States fell in December, indicating a slowing in upward price pressures. According to them, the Sensex is facing resistance at 61,000 levels, while the Nifty’s immediate hurdle is now at 18,300. If the Sensex clears the 61,000 mark, we can expect the 30-stock index to rise to 63,000. Similarly, if the Nifty manages to breach the hurdle placed at 18,300, it may become extremely bullish.

What is driving the Sensex and Nifty today?

According to market analyst Sugandha Sachdeva, “Indian stock market today witnessed strong rebound in early morning deals tracking global cues as wage growth in the US has declined in December, hinting a cool-off in upward price pressures.” She believes that a strong support is in sight at the 17,800 level, and that the Nifty will continue to rise, though it is still expected to face major resistance at the 18,500 level in the near term.

“We may see the benchmark spend some more time in this zone itself in the coming days as triggers like US inflation data due this week are expected to dictate the US Fed’s monetary policy stance,” Sugandha Sachdeva said.

“The US economic data released on Friday is significant from the standpoint of the global market. All data point to a strong but cooling US economy, indicating the possibility of a soft landing in the US. The ISM Services index was 49.6, down from 56.5 the previous month. The December job gain was 223000, the smallest in two years. “The hourly wage increase has slowed to 4.6 percent, from a recent peak of 5.6 percent.” “VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, concurred.

All of this, according to the Geojit Financial Services expert, points to cooling inflation and the possibility of the Fed becoming less hawkish in 2023. The market has already begun to discount this, with the dollar index falling below 104 and the US 10-year bond yield falling by 12 basis points. All of the indicators are positive.

When asked for his technical opinion on the Sensex and Nifty, Sumeet Bagadia, Executive Director at Choice Broking, stated, ” “Senex has strong support at 59,500 but faces an immediate hurdle at 691,000. After clearing this barrier, it may rise to 63,000 levels in the near future. Similarly, the Nifty is approaching a resistance level of 18,300. If this level is breached, the 50-stock index may become extremely bullish.” “

According to Sumeet Bagadia of Choice Broking, the Nifty has immediate support at 17,900 and 17,700 levels right now.